Three consecutive months of accelerating growth for manufacturing have come to an end, according to the Australian Industry Group’s Performance of Manufacturing Index, which recorded an overall result of 52.4 points in May.
The PMI was still in positive territory – with any result of 50 indicating expansion – but was down 6.1 points from April’s result of 58.5.
“There are mixed messages about the immediate outlook with new orders continuing to rise but with many manufacturers expressing concern about the prospects of sharp energy price rises in the months ahead,” said Innes Willox, Chief Executive of the Ai Group.
“Overall, the pace of growth in the manufacturing sector eased in May fuelled by falls in exports and domestic sales.”
Four of six manufacturing sectors tracked were above 50, with building materials flat and the textile, clothing and footwear, paper and printing sector improved but still in contraction, “while the large food & beverage sector fell back into contraction following a temporary recovery in April (seasonally adjusted).”
The monthly results had picked up pace each month since a sub-50 result in the Covid-19 Omicron variant-affected December/January result of 48.4. April’s was the strongest result since July 2015, according to the Ai Group.
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