The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) has remained in growth territory for November at 52.1 points.
Four of the six manufacturing sectors in the PMI showed expansion. Growth was strongest in the diverse textiles, clothing, footwear, paper and printing group (increased by 17.3 points to 71.6), the machinery and equipment sector (increased by 6.2 points to 60.0), as well as in the metal products (56.6 points) and chemicals sectors (57.9 points).
An Australian PMI reading above 50 points indicates that manufacturing activity is expanding. The distance from 50 indicates the strength of the increase.
Ai Group chief executive Innes Willox said it was encouraging to see new orders and employment continue to grow in November.
“Growth was strongest in the diverse textiles, clothing, footwear, paper & printing group, the machinery and equipment sector as well as in the metal products and chemicals sectors,” he said.
“November saw the long-delayed resumption of growth in Victoria – its first month of manufacturing expansion since March. In contrast, South Australia, while continuing to grow, was held back from a more positive result by the lost production in its three-day shutdown.”
Australian PMI: Key Findings for November:
- All seven activity indices in the Australian PMI declined from the October results, but four remained in expansion in November (see table below). Finished stocks fell into contraction (down 6.9 points to 44.3) while exports were largely stable across most manufacturing sectors (down 2.7 points to 50.0).
- Four of the six manufacturing sectors in the Australian PMI expanded in November, but the building materials, wood, furniture & other products sector (down 11.7 points to 43.8) and the large food & beverages sector (down 20.8 points to 43.1) slid steeply into contraction – the latter’s large decline due to various factors including falling supermarket sales, low demand in tourism regions and flat export markets.
- The input price index eased slightly in November (down 2.0 points to 64.6), indicating marginally slower price increases, while selling prices remained stable (down 4.0 points to 49.6).
- The average wages index (up 2.9 points to 60.2) rose back above its long-run average (58.6 points), most likely on the back of manufacturing award increases implemented in November.