The Australian Industry Group’s (Ai Group) released its February Performance of Manufacturing Index (PMI) yesterday. The PMI has increased 8.1 points to 59.3 in February.
The result is the fifth consecutive month of growth and the strongest result since 2002 (readings above 50 indicate expansion in activity, with the increase above 50 showing the strength of the manufacturing growth).
According to the PMI, there was also strong growth in new orders (up 6.9 points to 60.6) and sales jumped (up 7.7 points to 55.3). Production also increased (up 15.4 points to 65.3), as did employment (up 7.9 points to 57.5).
Ai Group chief executive Innes Willox said that the positive results were very promising but there are still issues for local manufacturers.
“The surge in February builds on a recovery from the sluggish performance in the third quarter of last year and marks a fifth month of expansion,” Willox said.
“However, substantial challenges remain with further growth constrained by the lack of business investment in recent years and renewed fears about energy security and energy prices now top-of-mind particularly for our more energy-intensive manufacturers.”