The Australian Industry Group (AIG) has released its Performance of Manufacturing Index (PMI) for October, which remained broadly stable teetering around recessionary levels.
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) eased slightly, dropping 0.6 points to 49.6 points in October 2022. This indicates broadly stable conditions (seasonally adjusted). This is the third month of flat conditions, following positive results between February and July. Results below 50 points indicate contraction, with lower results indicating a faster rate of contraction.
Results were mixed by sector – with consumer-oriented manufacturers performing strongly, but industry-oriented declining.
New orders was the only activity indicator in expansion in October. All activity indicators except employment declined from September, showing weakening conditions in manufacturing.
The employment index remains in contraction, reflecting declining production alongside ongoing labour shortages. Input prices continue to grow, but at lower levels than previous months.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
