Manufacturing sees a jump in activity after restrictions ease: PMI

There was a jump in manufacturing activity in November as pandemic-related restrictions eased, according to the Australian Industry Group, with its Performance of Manufacturing Index up 4.4 points for the month.

The monthly survey achieved an overall result of 54.8. Any result above 50 represents growth, and below it contraction. 

It follows an October result described as “treading water” by the Ai Group. Every sector tracked by the survey was in expansion in November, except for the chemical sector, which was stable over the month. 

“This was the first month of improvement following three months of flat results for the Australian PMI,” it noted in a statement on Wednesday. 

However, the industry was also experiencing pressures related to capacity and supply of both goods and labour. Last week the Australian Food and Grocery Council warned that supply chain pressures — including a shortage of pallets — were such that manufacturers were being forced to stop or slow production, and that shoppers should try and beat the Christmas rush.

“While input prices remain high and wages growth has firmed, market conditions are supporting some recovery of higher costs in market pricing of manufactured goods,” said Ai Group CEO Innes Willox.

November is the 13th straight month with a result above 50. 

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