The last Australian Performance of Manufacturing Index released in 2019 saw the result fall 3.5 points to 48.1, one of only three sub-50 results since 2015.
The Australian Industry Group’s November PMI survey results reflected “the weakest manufacturing conditions in three years,” the group said. According to the Ai Group, an overall sub-50 result “has only occurred in three months since July 2015.”
Any result below 50 indicates contraction, and above it expansion.
Three of six manufacturing sectors recorded results above 50. The largest sector, food and beverages, remained buoyant, and was up 0.4 points to 60.8 in November. Machinery and equipment (53.1), and chemicals (51.6) were the other two sectors in growth.
Metal products (46.8), building materials, wood, furniture and other (42.8) and TCF, paper and printing (38.1) were in contraction.
Of the industry’s concerns, the Ai Group said, “Drought remains a top concern for many manufacturers, particularly those located in rural areas or those selling metal products and machinery & equipment to the agricultural sector.
“The small but diverse TCF, paper and printing’ sector recorded its lowest reading since early 2013, with respondents noting weak market demand and rising raw material costs.”
The full results can be seen here.
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