The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) jumped by 2.0 points to 53.5 points in February 2016, taking it to its highest level since July 2010 and indicating a stronger rate of expansion ( Australian PMI® results above 50 points indicate expansion).
§ February was the eighth consecutive month in which the Australian PMI® has been above 50 points (net expansion). This is the longest continuous run of expansion since 2006.
§ Of the seven activity sub-indexes in the Australian PMI® , production (60.1 points), new orders (52.4 points), stocks (52.5 points), deliveries (53.5 points) exports (53.7 points) and sales (53.0 points) were positive in February. Employment (47.4 points), remained in contraction. Deliveries moved back into expansion in February after two months of contraction over the holiday period.
§ Four of the eight manufacturing sub-sectors in the Australian PMI® expanded in February (three month moving averages), the same number as in January. Textiles, clothing and other manufacturing fell into contraction and non-metallic mineral products moved into expansion. The best expansions continue to be in food & beverages (61.7 points), wood & paper (57.1 points) and petroleum & chemicals (56.4 points). Machinery and equipment moved very close to stabilising (49.3 points), with its best result since June 2014.
§ Positive trends identified by manufacturers in February included the lower Australian dollar, which is boosting export volumes, and some new construction projects and expansions.
§ These positive trends were offset by further falls in mining investment, adverse impacts from drought conditions, intense overseas competition and ongoing pressure on margins.
Get the Aussie down further and what this birdie fly. Full report.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) jumped by 2.0 points to 53.5 points in February 2016, taking it to its highest level since July 2010 and indicating a stronger rate of expansion ( Australian PMI® results above 50 points indicate expansion).
