Manufacturing down during summer holiday months: PMI

Manufacturing contracted over the December and January period as the Omicron phase of the pandemic ended a period of growth, according to the Australian Industry Group’s Performance of Manufacturing Index.

The PMI of 48.4 was down from November’s 54.8. Any results under 50 indicates contraction, and above it growth. The November result (released on December 1) was the 13th in a row to indicate stable or expansionary conditions.

Six of seven activity indices fell over December/January, according to the Ai Group, with production, new orders, sales and stocks described as remaining in “mildly positive” territory.

“The new orders index fell steeply pointing to a reduction of confidence among businesses dealing with new implications of the COVID-19 pandemic,” said Ai Group chief executive Innes Willox.

Three of the six sectors tracked in the survey-based PMI were above 50, led by the building materials and machinery & equipment sectors. The largest sector, food and beverage, slid below 50.

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