Manufacturing slumps in final PMI released this year

The final result for 2022 in the Australian Industry Group’s Performance of Manufacturing Index showed “deteriorating conditions” following three months of broadly stable results.

The PMI fell by 4.9 points over November to 44.7 in the survey-based PMI, released on Thursday.

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

Five of six sectors recorded sub-50 results, with only building, wood and furniture products achieving mild growth on the strength of new orders. 

The largest sector, food and beverages, fell by 7.5 points to 47.9, “indicating weak conditions in November.”

By activity index, six of seven recorded contractionary results. 

Among concerns noted by the Ai Group were “many businesses” reporting “a downturn in new orders and sales, as national and global economic headwinds reduce economic confidence. 

“This demand-side deterioration comes on top of tight supply side conditions, with labour market and supply chain pressures still very intense.”

The report can be read here.

The next PMI, tracking the December and January period, will be released on February 1.