Australia Industry Index Manufacturing

The Ai Group Industry Index for the Australian manufacturing sector dropped by 17.8 points to -29.7 in March, signaling continued contraction. Some manufacturers reported losing customers due to the slowing economy, while US tariffs and a weak AUD are affecting the supply of raw materials. Upstream manufacturing showed slight easing in March. The chemicals index fell by 5.8 points to -3.4, while the contraction in the minerals and metals sector worsened, declining by 9.5 points to -42.3. Chemical manufacturers cited slower sales demand, partly due to natural disasters and global economic uncertainty, while most minerals and metals manufacturers reported a decline in activity, impacted by cost pressures, weaker cash flow, and US tariff concerns.