Manufacturing News

Australian manufacturing expands in June, Australian PMI reports


The Ai Group Australian Performance of Manufacturing Index (Australian PMI) rose by 1.6 points to 54.0 in June, indicating mild growth as the index recorded a fifth consecutive month in expansion. 

According to Ai Group chief executive Innes Willox, despite input price pressures continuing to accumulate, the Australian manufacturing sector expanded again in June with solid increases in production and new orders, and a slight lift in employment. 

“While export sales were up, domestic sales fell reflecting the decline in consumer and business confidence in the face of concerns about inflation, interest rates and asset values,” Willox said. 

“Selling prices were higher in June, but by a smaller amount than input costs as less robust demand inhibited the ability of manufacturers to fully recover their higher costs in the market. Performance was mixed across the manufacturing sector with the machinery and equipment; chemical products; and building products sectors the major contributors to expansion while performance slipped in the food and beverages sector and fell sharply in the metal products sector, which reported a fall in new orders and difficulties securing inputs and labour.” 

Key findings for June 2022 

Manufacturing continued to expand moderately in June. Most subsectors improved but the metals sector declined dramatically. 

Labour challenges and supply chain disruptions remain the major structural constraints on manufacturing. Input prices rose again to mark the highest-ever reading in the Australian PMI series. 

Most manufacturing activity indicators expanded in June. However, sales declined and are now in contraction, reflecting weaker market conditions than in past months. 

Manufacturing exports rebounded strongly, as shipping issues earlier in the year have cleared. 

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