Manufacturing activity waned over August but avoided contraction, according to the Australian Industry Group’s monthly Performance of Manufacturing Index.
The overall PMI was down 9.2 points versus July to 51.6, which the Ai Group characterised as “weak expansion.”
Any result above 50 in the PMI indicates growth, and below it contraction.
The Ai Group said that “average sales and production levels paused but exports and deliveries from suppliers both contracted (results below 50 points).
“Forward orders and inventories continued to expand, suggesting that sales are being delayed.”
It is the 11th straight result above 50 in the PMI, and comes after industry minister Christian Porter praised manufacturing’s resilience yesterday, with profits rising by 6.8 per cent in the March quarter.
“Resilience of the manufacturing sector as a whole is something throughout COVID-19 we can be proud of as Australians,” he told Parliament, though cautioned that it could not cope with lockdowns indefinitely.
Subscribe to our free @AuManufacturing newsletter here.