Election month dampens mood, but Australian manufacturing continued growth streak in May

The Australian manufacturing sector continued to grow during May’s federal election month, recording its 33rd straight month of stable or growth results according to the Australian Industry Group’s Performance of Manufacturing Index.

May’s PMI result was 52.7, an easing by 2.1 points compared to April. It was led by the food and beverage sector, which at 63.9 points “expanded at its fastest rate on record”. Three of six sectors recorded above-50 results. Any result above 50 indicates expansion, and below 50 represents contraction.
“While Australia’s manufacturing sector continued to grow in May, performance was mixed across the range of manufacturing industries and there are signs of further softening in the months ahead,” said Ai Group CEO Innes Willox in a statement.
“Manufacturers are hoping that the resolution of political uncertainties associated with the election will provide a base for a return to more robust conditions.
“As one member put it in responding to the survey, ‘elections kill business’.”
Five of seven activity sub-indices were above 50. Each of these eased in the month except for employment and finished stocks.
Image: AAP
Click here to see the full results.
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