The Ai Group Australian Performance of Manufacturing Index (Australian PMI®) fell 4.9 points to 44.7 points in November 2022, indicating deteriorating conditions (seasonally adjusted). This is the first month of contraction following three months of flat conditions. Results below 50 points indicate contraction, with lower results indicating a faster rate of contraction.

• Manufacturing fell into contraction in November following three months of stability. Five of the six sectors in the PMI are now in contraction, as are six of the seven activity indicators.
• Demand-side conditions have deteriorated in the face of national and global economic uncertainty. Production, new orders and sales were all significantly down in November.
• Supply-side pressures on manufacturing – tight labour markets and supply chain interruptions – appear to have peaked. But these pressures are yet to materially decline, and remain well elevated on long-run trend.