Manufacturing strengthened over holiday period: PMI

Australian manufacturing continued “stronger improvement in conditions” over December and January following the disruption last year from Covid-19, according to the Australian Industry Group’s Performance of Manufacturing Index.

The monthly PMI was up 3.2 points to 55.3 points in December/January versus November. Manufacturing had been in recovery since September according to the survey-based PMI.

A result over 50 indicates expansion, and below it contraction.

“The turnaround from September is more decisive than was expected and is an encouraging sign of the resilience of Australian manufacturing and the effectiveness of fiscal and monetary policy measures in response to COVID,” said Ai Group chief executive Innes Willox, cautioning that it was however too early to claim a full recovery.

Three of six sectors were in growth territory over the two months, with the largest sector, food and beverages, up 16.4 points to 59.5. Machinery & equipment rose 6.5 points to 66.5 and chemicals 8.4 points to 66.3.

All activity indices except sales (down 4.3 points to 46.5) expanded.

The full results can be seen here.

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