The manufacturing sector enjoyed its second straight month of growth – described as a “more convincing expansion” than October – in November’s Australian Industry Group Performance of Manufacturing Index survey.
The November PMI recorded a result of 54.2, up from October’s 50.9. Any result above 50 indicates expansion.
The Ai Group described the result as more broadly based than the previous month’s result, described at the time as expansion by “the narrowest of margins”.
“Both the lift in the pace of expansion and its broader base are encouraging with production, sales, exports, employment and new orders all moving forward in November,” said chief executive Innes Willox, adding that the recovery in the machinery and equipment sub-index was particularly encouraging.
“If this translated into a more substantial pick-up in business investment over the next few months, it would go a long way to making up for some areas of weakness including in the metal products sub-sector, which continues to be buffeted by global oversupply,” he said.
Six of seven sub-indexes recorded results above 50 in the survey. Three of eight sub-sectors were in expansion territory, with these being food and beverage (56.5), petroleum and chemicals (57.1) and print and recorded media (50.8).