Activity in the Australian manufacturing industry continued to grow in May, although at a slower pace than the previous month, according to the latest Australian Industry Group PricewaterhouseCoopers Australian Performance of Manufacturing Index (Australian PMI).
Though the Australian PMI fell 3.5 points to 56.3, readings above 50 indicate an expansion in activity, which is a positive sign for the industry.
A slowing in growth in manufacturing production, new orders, inventories and supplier deliveries saw a fall in the number of sub-sectors expanding, from eleven in April, to seven in May, the report indicated.
Growth in manufacturing employment and wages strengthened during May.
“The continuing growth in manufacturing in May is a welcome sign of a recovery that has achieved some traction. Unfortunately, the patchiness of the past several months also continues and there are worrying signs of weakness among the consumer-related sub-sectors of the industry,” said Australian Industry Group chief executive, Heather Ridout.
“The sluggishness among the consumer-related sub-sectors reflects the cumulative impact of six rate rises out of seven RBA meetings and, to a lesser extent, an erosion of confidence against the background of falling global stock markets and high public debt levels in a number of European countries.”