Australia’s Industry Index stood at -29.9 in July 2026, little changed from -30.0 in June. The easing energy crisis offered limited relief, but elevated fuel costs continued to pressure operations. New orders improved slightly, rising 3.7 points to -32.8, while input volumes fell 6.1 points to -9.1, staying mildly contractionary on trend. Activity and sales dropped further to -34.8, reflecting subdued demand and restrained investment amid high costs. Employment eased to -23.0 after a volatile H1 2026, as firms grappled with labour shortages and rising wages. Cost pressures showed signs of relief: input prices slid 18.9 points to 53.9 from June’s record high, while sales prices eased to 15.1, suggesting stabilising price growth after Q2 volatility. Capacity utilisation edged up to 74.0%, though businesses continued to cite many challenges, including raw material, fuel and freight costs, regulatory burdens, labour shortages, weak capital investment, and rising land taxes.