Manufacturing News

Manufacturing stable in September, Australian PMI reports

The Ai Group Australian Performance of Manufacturing Index (Australian PMI®) rose by 0.9 points in September, indicating a second month of broadly stable conditions following positive results since February.

According to Innes Willox, chief executive of Ai Group,  manufacturing activity has held steady in September, demonstrating its resilience in the face of more uncertain economic conditions.

“However, the manufacturing employment index declined and is now in significant contraction. Manufacturers report that absenteeism, high labour costs and labour shortages are hampering their ability to maintain employment levels.”

“Absenteeism will be helped somewhat by the welcome National Cabinet decision to scrap mandatory COVID isolation rules. However, ongoing labour shortages continue to point to the great national urgency to address skills gaps across the Australian economy,” Willox added.

Key findings for September 2022

Manufacturing was broadly stable in September, the second month of even results since February.

Activity contracted in all sectors but chemicals and machinery and equipment.

New orders and sales grew in September and the pace of growth improved from August.

The employment index has fallen rapidly, which reflects labour shortage pressures. The wages index remains very high.

Labour challenges remain an ongoing constraint and supply chain disruption continues to be a key concern for manufacturing similar to previous months.

Australian PMI September

The full report can be downloaded here.

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