The Ai Group Australian Industry Index rose by 5.8 points to -3.2 in July, marking its strongest reading in three years and continuing a gradual recovery trend seen since mid-2024.ew orders rebounded by 6.8 points to -4.9, while input volumes reached near-neutral levels at -0.3—their highest since April 2024. Some businesses reported increased customer enquiries, though others noted lingering uncertainty from global tariffs and weak consumer confidence. The sales index also improved to -8.1, the best result since August 2022, as trend momentum picked up. However, the employment index edged slightly lower to -4.0, with persistent challenges in filling roles, especially in construction-related and labour hire sectors. Input prices surged by 11.1 points to 47.9, while sales prices fell slightly, widening the cost-to-price gap to 43.4 and intensifying margin pressures. Despite rising input, wage, and utility costs, many firms are struggling to pass those increases onto customers.