Stars align as Australian manufacturers record strongest month since 2002

Australia

Australian manufacturing recorded its highest monthly expansion for 15 years in August, according to the latest industry figures.

The Australian Industry (Ai) Group’s Australian Performance of Manufacturing Index (PMI) jumped by 3.8 points to 59.8 last month, marking an eleventh consecutive month of growth.

“The alignment of the stars continued for domestic manufacturing with the Ai Group Australian PMI indicating a very strong performance in August,” said Ai Group CEO Innes Willox.

“Production and employment lifted and new orders grew strongly in a month of broad-based expansion across the sector.”

Six of the seven activity sub-indexes in the Australian PMI expanded in August with production and new looking especially strong.

“A particularly strong showing by the non-metallic mineral products sub-sector reflects its close links with the building and construction industry buoyed by investment in infrastructure, a lift in commercial building and solid levels of activity in residential building,” Willox continued.

“Alongside the weight of good news, the recent lift in the value of the Australian dollar is dampening the outlook for sales growth both in export and the domestic markets.

“As well, energy prices and the uncertainty around energy policy are inhibiting investment and causing grave concern particularly among the more energy-intensive segments of the industry.”