Australia’s Ai Group Industry Index for manufacturing increased 4.5 points to -16.8 in June 2026, marking the highest level since February and signaling an easing in the contraction, though conditions remained fragile. Manufacturers faced rising material costs, patchy demand, constraints on raw material availability, and higher business costs. Meanwhile, constructors indicated that the changes to CGT announced in the federal budget had dampened enquiries, reduced orders, and prompted some firms to reassess their workforce needs.