Australian Industry Group, Manufacturing News

Demand drags down manufacturing in November: Australian PMI

Demand drags down manufacturing in November: Australian PMI IBSA

The Australian Industry Group (Ai Group) Australian Performance of Manufacturing Index (Australian PMI®) fell 4.9 points to 44.7 in November, indicating deteriorating conditions.

This is the first month of contraction following three months of flat conditions.

Innes Willox, chief executive of Ai Group the national employer association said, “There are now signs of a slowdown in Australian manufacturing. Demand conditions in the market declined in November as deteriorating national and global economic conditions weighed on the industry.

“Longstanding supply-side problems, such as tight labour markets and supply chain disruptions, appear to have peaked but remain elevated. Energy prices continue to rise.
Manufacturing is at risk of being squeezed between deteriorating demand conditions and persistent supply side pressures.”

Australian PMI®: Key Findings for November 2022

Manufacturing fell into contraction in November following three months of stability. Five of the six sectors in the Australian PMI® are now in contraction, as are six of the seven activity indicators.

Demand-side conditions have deteriorated in the face of national and global economic uncertainty. Production, new orders and sales were all significantly down in November.

Supply-side pressures on manufacturing – tight labour markets and supply chain interruptions – appear to have peaked. But these pressures are yet to materially decline and remain well elevated on long-run trend.

Download full report here.

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