Mild manufacturing rebound in November
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) rose by 4.4 points to 54.8 in November – the first month of improvement following three months of flat results for the Australian PMI (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
All activity indexes in the Australian PMI expanded or were stable in November, with the continued expansion of forward orders indicating further recovery is likely with the easing of remaining restrictions.
Ai Group Chief Executive Innes Willox said, “The Australian manufacturing industry grew more decisively in November after a few flat months during which the south-east corner of the country was held back by the delta outbreaks and associated activity restrictions and while the states and territories tightened barriers to the movement of people. With restrictions easing, performance improved across the manufacturing sectors with a sharp rebound in food and beverages backed by strong growth among machinery and equipment, metal products and building products manufacturers. Production rose modestly while domestic sales and employment were broadly unchanged from October’s levels. Exports bounced back into growth, continuing the patten of volatility seen over recent months. Supplier deliveries and finished stocks were both firmer and new orders stretched its run of improvements to 14 months. Manufacturers are operating at relatively high capacity and continue to voice concerns about reliability of the supply of inputs and the difficulty in filling new positions due to worsening skill shortages and localised labour shortages. While input prices remain high and wages growth has firmed, market conditions are supporting some recovery of higher costs in market pricing of manufactured goods.”
All manufacturing sectors in the Australian PMI expanded in November with the exception of chemicals, which indicated stable conditions (down 6.4 points to 50.6). Food and beverages rose sharply into growth (up 19.9 points to 57.3), mostly offsetting a large fall the previous month, while metal products also saw a lift from contraction to expansion (up 7.8 points to 56.4).