ACCI-Westpac Survey of Industrial Trends

The Australian manufacturing sector has stalled in Q2 2026, with the Westpac-ACCI Actual Composite falling to a neutral 50.5. Heightened cost pressures and cooling demand are eroding profit margins and dampening business sentiment.

Key Takeaways

• 1.Momentum in Australia's manufacturing sector has stalled, with the Actual Composite index falling to a neutral 50.5 in Q2 from 57.6 in Q1.
• 2.Rising cost pressures driven by the Middle East conflict are compressing profit margins as firms find it difficult to fully pass on costs to consumers.
• 3.Business sentiment has turned significantly pessimistic, with a net 21% of respondents expecting a deterioration in the general business situation over the next six months.

Table of Contents

• Key survey results
• The business cycle & economic outlook
• Activity & orders
• Investment & profitability
• The labour market
• Prices & inflation
• Factors limiting production
• Summary of survey results

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