Manufacturing narrowly achieves a year of month-on-month growth in PMI

Manufacturing narrowly achieved its 12th straight month of growth in September, according to the Australian Industry Group’s Performance of Manufacturing Index, with the industry hopeful it will see an uplift after pandemic-related restrictions ease.

The PMI was 0.4 points lower than in August, with an overall result of 51.2, characterised as a year-long recovery that had “all-but-stalled” during the month.

Source: Ai Group

Any result above 50 indicates growth, and below it contraction.

Four of six sectors recorded results of 50 or above in the survey-based PMI, with machinery & equipment, and TCF, paper & printing contracting. 

Three of seven activity sub-indices were below 50, though there were “bright spots on the horizon with new orders continuing to expand (although modestly) and production and finished stocks both rising at a faster pace than in August,” said Ai Group chief executive Innes Willox. 

“Manufacturers are hoping that the prospect of restrictions being wound back will see a strong lift in performance over coming months.”

It follows the release earlier this week of the Australian Chamber-Westpac Survey of Industrial Trends for the September quarter, showing the industry growing slightly during the period.

“Despite lockdowns in NSW, Victoria, and the ACT causing Australia’s manufacturing output to stall, expectations for future growth remain positive,” said ACCI chief executive Andrew McKellar.

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