Manufacturing records best PMI in seven years despite cost, skill pressures

Manufacturing’s expansion gained pace over April to grow at the fastest rate since July 2015, according to the Australian Industry Group’s monthly Performance of Manufacturing Index.

The PMI rose by 2.8 points over the month for an overall result of 58.5. 

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

April’s is the third straight result above 50, following 48.4 for December/January, influenced by a surge in Covid-19 infections over the holiday period.

Despite the positive result, Ai Group chief executive Innes Willox pointed out that difficulties in finding employees and rising costs were continuing to create constraints.

“New orders increased further in April and, with many businesses feeling capacity constraints and difficulties in securing inputs and staff, the pressures on filling orders are set to continue in coming months,” said Willox in a statement.

Picture: www.aigroup.com.au

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