The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) rose by 1.6 points to 54.0 in June, indicating mild growth as the index recorded a fifth consecutive month in expansion (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Innes Willox, Chief Executive of Ai Group the national employer association said: "Although input price pressures continued to accumulate, Australia's manufacturing sector expanded again in June with solid increases in production and new orders and a slight lift in employment. While export sales were up, domestic sales fell reflecting the decline in consumer and business confidence in the face of concerns about inflation, interest rates and asset values. Selling prices were higher in June but by a smaller amount than input costs as less robust demand inhibited the ability of manufacturers to fully recover their higher costs in the market. Performance was mixed across the manufacturing sector with the machinery & equipment; chemical products; and building products sectors the major contributors to expansion while performance slipped in the food & beverages sector and fell sharply in the metal products sector, which reported a fall in new orders and difficulties securing inputs and labour," Mr Willox said.
Australian PMI®: Key Findings for June 2022
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 54.0 | 1.6 | 50.9 |
| Production | 54.7 | 2.4 | 51.6 |
| Employment | 51.0 | 0.8 | 49.2 |
| New Orders | 55.7 | 0.7 | 51.7 |
| Supplier Deliveries | 51.5 | -12.4 | 50.8 |
| Finished Stocks | 56.7 | -5.5 | 50.0 |
| Exports | 53.0 | 10.1 | 50.0 |
| Sales | 45.0 | -2.6 | 49.7 |
| Input prices | 89.3 | 2.1 | 68.3 |
| Selling prices | 67.8 | 2.1 | 49.9 |
| Average wages | 69.3 | -5.5 | 59.2 |
| Capacity utilisation (%) | 81.9 | 6.0 | 74.5 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | 45.0 | -2.5 | 53.6 |
| Machinery & Equipment | 57.3 | 5.3 | 50.5 |
| Metals products | 40.7 | -16.2 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 55.6 | 1.6 | 51.8 |
| Building, wood, furniture & other | 52.4 | 2.1 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 67.2 | 19.2 | 48.8 |
Results above 50 points indicate expansion. All indexes for sectors in the Australia PMI® are reported in seasonally adjusted terms.
Background: The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) is a national composite index calculated from a weighted mix of the diffusion indices for production, new orders, deliveries, inventories and employment. An Australian PMI® reading above 50 points indicates that manufacturing activity is expanding; below 50, that it is declining. The distance from 50 indicates the strength of expansion or decline. Australian PMI® results are based on responses from a national sample of manufacturers that includes all states and all sub-sectors. The Australian PMI® uses the ANZSIC industry classifications for manufacturing sub-sectors and sub-sector weights derived from ABS industry output data. Seasonally adjusted and trend data are calculated according to ABS methodology. The Australian PMI® commenced in 1992. More information about the history and methodology of the Australian PMI® is available online.
Full list of 2022 Australian PMI® release dates.
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