The Australian Industry Group (Ai Group) Australian Performance of Manufacturing Index (Australian PMI®) eased slightly, dropping 0.6 points to 49.6 points in October 2022, indicating broadly stable conditions.
This is the third month of flat conditions, following positive results between February and July. Results below 50 points indicate contraction, with lower results indicating a faster rate of contraction.
Innes Willox, Chief Executive of Ai Group the national employer association said, “Australian manufacturing is in a holding pattern, with three straight months of flat results. Demand conditions in the market remain stable, but longstanding supply-side problems, such as labour and supply chain shortages, continue to drag on the industry.
Manufacturers are concerned that if economic conditions deteriorate – as this month’s Federal budget forecasts – they will be unable to maintain employment and production in the face of these pressures.”
Australian PMI®: Key Findings for October 2022
Manufacturing was broadly stable in October, the third month of even results.
Results were mixed by sector – with consumer-oriented manufacturers performing strongly, but industry-oriented declining.
New orders was the only activity indicator in expansion in October. All activity indicators except employment declined from September, showing weakening conditions in manufacturing.
The employment index remains in contraction, reflecting declining production alongside ongoing labour shortages. Input prices continue to grow, but at lower levels than previous months.
