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
| 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.
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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