Australian manufacturing’s strong start to 2021 has continued according to the Australian Industry Group’s Performance of Manufacturing Index, which recorded its best monthly result since March 2018 and the sixth straight month of strong recovery since the lows of the pandemic.
The overall PMI for March was up 1.1 points to 59.9. Any result above 50 indicates expansion, and below it contraction.
Each of six sectors recorded a result above 50 in the monthly survey. “Especially buoyant” conditions were observed in the machinery & equipment (up 0.6 points to 65.0) and textiles, clothing, footwear, paper & printing products (up 3.5 points to 66.1) sectors.
Each activity index was also in growth territory. New orders (up 3.6 poInts to 63.5) suggest growth could continue over the next months.
“Some growing pains are evident with deliveries of inputs not keeping up with sales of finished products and with reports of skill shortages becoming more widespread,” added Willox.
“The challenge over the next couple of months will be to maintain momentum as fiscal support is wound back further and while COVID-19 remains a threat.”
Full results can be read here.
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