VET News

How is Industry Coping with the Economic Slowdown?

As the Australian economy emerged from the pandemic in 2022, industry grappled with many supply-side challenges for their operations. Ai Group data reports that inflation, labour shortages and supply chain issues have emerged, and we’ve seen them continue to deteriorate as the economy continues to slow.

Using the feedback in the Australian Industry Index monthly surveys, Ai Group’s Research and Economics team have developed a business conditions sentiment indicator (see below).  It tracks what members are reporting in terms of their principal opportunities and challenges. Scores above zero indicate positive sentiment (the issue is supporting business operations), and those below zero negative sentiment (it detracts from business operations). 

Looking at the sentiment indicator over the last year, what we can see is a deterioration in the three main factors that impact Australian businesses: supply chain disruptions, labour shortages, and demand conditions.

Access the Ai Group article here.

Access the index here.

Date posted Jun 15, 2023