The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) rose by 1.4 points to 63.2 in June, delivering the highest monthly result since the Australian PMI® commenced in 1992 (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Ai Group Chief Executive Innes Willox said: "The 2020-21 financial year closed on a high note for Australia's manufacturing sector. Ai Group's June Australian PMI® pointed to record growth across the sector fuelled by the fastest recorded pace of expansion in each of the food & beverages; machinery & equipment; building materials; and chemicals sectors. Production, employment, and sales exports were all higher than in May although the rate of acceleration generally eased. Exports of manufactured goods surged in June and new orders were also higher, pointing to the likelihood of further expansion in the months ahead. The strength of the recovery continued despite headwinds from COVID outbreaks and associated lockdowns and border restrictions, high freight costs and the widespread difficulties employers are experiencing in filling positions," Mr Willox said.
Australian PMI®: Key Findings for June 2021
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 63.2 | 1.4 | 50.8 |
| Production | 60.7 | -3.8 | 51.5 |
| Employment | 60.3 | -1.0 | 49.1 |
| New Orders | 70.6 | 5.7 | 51.4 |
| Supplier Deliveries | 58.3 | 6.7 | 51.0 |
| Finished Stocks | 60.3 | -2.0 | 49.7 |
| Exports | 60.2 | 11.3 | 50.1 |
| Sales | 59.0 | -1.9 | 49.5 |
| Input prices | 78.8 | -3.3 | 67.6 |
| Selling prices | 63.6 | 5.3 | 48.5 |
| Average wages | 61.6 | -1.3 | 58.7 |
| Capacity utilisation (%) | 82.3 | -2.8 | 74.2 |
| Trend | Index this month | Change from last month | Long-run average |
| Food & Beverages | 64.8 | 1.0 | 53.9 |
| Machinery & Equipment | 65.8 | 0.6 | 50.2 |
| Metals products | 59.7 | 2.6 | 47.4 |
| Petroleum, coal, chemicals & rubber products | 64.9 | 0.8 | 51.6 |
| Building, wood, furniture & other | 66.4 | 1.7 | 50.0 |
| Textiles, clothing, footwear, paper & printing | 52.8 | -3.0 | 46.8 |
Results above 50 points indicate expansion. * All indexes for sectors in the Australian PMI® are reported in trend terms (Henderson 13-month filter).
Background: The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) is a national composite index calculated from a weighted mix of the diffusion indices for production, new orders, deliveries, inventories and employment. An Australian PMI® reading above 50 points indicates that manufacturing activity is expanding; below 50, that it is declining. The distance from 50 indicates the strength of expansion or decline. Australian PMI® results are based on responses from a national sample of manufacturers that includes all states and all sub-sectors. The Australian PMI® uses the ANZSIC industry classifications for manufacturing sub-sectors and sub-sector weights derived from ABS industry output data. Seasonally adjusted and trend data are calculated according to ABS methodology. The Australian PMI® commenced in 1992. More information about the history and methodology of the Australian PMI® is available online.
Full list of 2021 Australian PMI® release dates.
Media Enquiries: Tony Melville: 0419 190 347
