Manufacturing strengthened last month to best result since July 2021: PMI

Manufacturing continues to recover following a dip over the holiday months, with March’s Australian Industry Group Performance of Manufacturing Index strengthening to an overall result of 55.7.

A result above 50 indicates expansion and below it contraction.

The overall result was a second straight month above 50, and was up 2.5 points from February. February was a return to growth after a surge in Covid-19 infections influenced a result of 48.4 for the December/January period. 

Every sector tracked by the Ai Group PMI was in expansion over March, except food and beverage, which is the largest of the six, and which recorded a result of 46.9 (down 0.5 points from February’s result.)

“The Australian manufacturing sector grew faster in March as manufacturers added new staff, lifted sales and continued to expand production (although at a slower pace than in February),” said Ai Group chief executive Innes Willox in a statement.

Six of seven activity indices achieved results above 50, with supplier deliveries down down 3.3 points to 45.7.

“Across manufacturing pressures from wages and input prices stepped up while selling prices growth saw manufacturers recover some cost increases in the market,” added Willox. 

Picture: www.aigroup.com.au

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