The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) eased slightly in October, dropping 0.6 points to a broadly stable 49.6 (readings below 50 points indicate contraction in activity, with lower results indicating a faster rate of contraction). This is the third month of flat conditions, following positive results between February and July.
Innes Willox, Chief Executive of Ai Group the national employer association said: “Australian manufacturing is in a holding pattern, with three straight months of flat results. Demand conditions in the market remain stable, but longstanding supply-side problems, such as labour and supply chain shortages, continue to drag on the industry. Manufacturers are concerned that if economic conditions deteriorate – as this month’s Federal budget forecasts – they will be unable to maintain employment and production in the face of these pressures,” Mr Willox said.
Australian PMI®: Key Findings for October 2022
- Manufacturing was broadly stable in October, the third month of even results.
- Results were mixed by sector – with consumer-oriented manufacturers performing strongly, but industry-oriented declining.
- New orders was the only activity indicator in expansion in October. All activity indicators except employment declined from September, showing weakening conditions in manufacturing.
- The employment index remains in contraction, reflecting declining production alongside ongoing labour shortages. Input prices continue to grow, but at lower levels than previous months.
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 49.6 | -0.6 | 50.9 |
| Production | 47.6 | -0.1 | 51.5 |
| Employment | 46.9 | 7.1 | 49.1 |
| New Orders | 53.8 | -4.0 | 51.8 |
| Supplier Deliveries | 48.3 | -4.5 | 50.8 |
| Finished Stocks | 49.9 | -0.1 | 50.0 |
| Exports | 49.4 | -2.1 | 50.0 |
| Sales | 48.4 | -3.0 | 49.7 |
| Input prices | 78.0 | -6.8 | 68.5 |
| Selling prices | 67.5 | -2.7 | 50.3 |
| Average wages | 71.0 | -5.1 | 59.5 |
| Capacity utilisation (%) | 79.2 | -1.2 | 74.6 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | 55.4 | 6.8 | 53.6 |
| Machinery & Equipment | 51.1 | -4.3 | 50.5 |
| Metals products | 42.3 | -2.0 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 43.6 | -13.3 | 51.8 |
| Building, wood, furniture & other | 49.7 | 5.1 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 53.8 | 13.9 | 48.8 |
Results above 50 points indicate expansion.
