Australian manufacturing achieved back-to-back months of overall growth, driven by its two biggest sectors, according to the Australian Industry Group’s Performance of Manufacturing Index.
The monthly PMI was up 2.0 points to 53.5 in July, the first occasion of consecutive plus-50 months since October 2019.
A result of 50 indicates stability, above it growth, and below it contraction.
Six of seven activity sub-indices were in expansion, with only exports (down 5.8 to 41.4) below 50.
The growth was concentrated in the two largest sectors, noted the Ai Group, food and beverage (up 1.9 to 59.4) and machinery and equipment (up 3.2 to 54.3.) The other four contracted.
“The performance of the sector was in part due to stimulus measures including JobKeeper and the extension of the instant asset write-off arrangements which boosted sales and orders in the machinery & equipment sector,” cautioned Ai Group chief executive Innes Willox.
“Against the positive signs from the manufacturing sector, the winding down of stimulus from September, the impact of the Melbourne lockdown and the severity of the outbreak, as well as tougher border restrictions are likely to weigh on the sector in coming months.”
The full results can be accessed here.
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