Manufacturing is gaining momentum with the Australian Industry Group Australian Performance of Manufacturing Index increasing 3.3 points to 54.2 in November. Any figure above 50 means the industry is expanding and the Ai Group says the latest result above 54 points to a more convincing expansion across the manufacturing sector. Ai Group chief executive Innes Willox said it showed the manufacturing sector was continuing to rebound after the weakness seen a few months ago. Mr Willox said the latest Australian PMI in November indicated both a lift in the pace of expansion and a broader base of growth. He said with production, sales, exports, employment and new orders all moving forward the signs were encouraging. “A particularly positive sign is that recovery in the important machinery and equipment sub-sector extended into its third month”.
“If this translated into a more substantial pick-up in business investment over the next few months, it would go a long way to making up for some areas of weakness including in the metal products sub-sector, which continues to be buffeted by global oversupply”.
Key Australian PMI findings for November:
Three manufacturing sub-sectors expanded.
Food and beverages up 6.1 points to 56.5.
Petroleum and chemical products up 1.7 points to 57.1.
Machinery and equipment up 0.8 points to 54.9.
Non-metallic mineral products were also up 5.5 points.