The Ai Group Industry Index for Australia's manufacturing sector contracted almost at a same pace in May, at -23.5. Manufacturers continued to face delays in major projects and growing market hesitation amid global and domestic uncertainty. Within the sector, performance varied sharply across categories. The chemicals index plunged by 32.1 points to -38.2, as customer confidence weakened due to shifting international tariff policies. Minerals and metals improved by 22.0 points but remained in contraction at -11.2. Machinery and equipment declined further, falling by 5.8 points to -49.2—its lowest level since January 2020—driven by supply chain issues, reduced capital investment, and higher import costs. Meanwhile, food, beverages, and textiles improved slightly by 5.2 points to -10.0 but still remained in negative territory.