Australian Manufacturing stabilises in November
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) declined by 4.2 points to 52.1 in November, indicating expanding conditions but at a slower rate than in October (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Ai Group chief executive Innes Willox said, “The manufacturing sector was broadly stable in November after a return to positive territory in October. Growth was strongest in the diverse textiles, clothing, footwear, paper and printing group, the machinery and equipment sector as well as in the metal products and chemicals sectors. The large food and beverages sector declined sharply in the seasonally adjusted measure as exports, supermarket sales and low demand in tourism areas took a toll.
“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. Encouragingly, both new orders and employment continued to grow in November, pointing to the prospect of a continuing recovery as we head towards the end of the year,” Willox said.
All seven activity indices in the Australian PMI declined from the October results, but four remained in expansion in November including: Machinery & Equipment; Metals products; Textiles, clothing, footwear, paper & printing.