The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) dropped by 9.2 points to 51.6 in August, indicating weak expansion across manufacturing and effectively pausing a solid period of recovery throughout 2021 (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Ai Group Chief Executive Innes Willox said: "August saw a steep retreat from the healthy expansion in manufacturing performance that has characterised most of this year. Lockdowns across the country, particularly in NSW and Victoria were the major detractor from performance with ongoing strength outside of these states sufficiently strong to maintain the national performance in positive territory (although by a slim margin). The building materials and metal product sectors saw the steepest declines due in large part to the impacts of lockdown measures on the construction sector. The food & beverage and chemicals product sectors continued to grow strongly while the machinery & equipment sector barely held onto recent gains. Employment grew slightly across the manufacturing sector as manufacturers built up stocks rather than cut back on production. Looking forward, there was positive news in the further growth in new orders in August and the easing of restrictions on construction will go some way to rebuilding confidence or at least hope among its suppliers," Mr Willox said.
Australian PMI®: Key Findings for August 2021
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 51.6 | -9.2 | 50.8 |
| Production | 50.2 | -11.6 | 51.5 |
| Employment | 51.4 | -9.4 | 49.2 |
| New Orders | 57.1 | -5.4 | 51.5 |
| Supplier Deliveries | 41.3 | -18.3 | 51.0 |
| Finished Stocks | 55.0 | -0.1 | 49.8 |
| Exports | 45.1 | -8.5 | 50.1 |
| Sales | 49.9 | -11.8 | 49.5 |
| Input prices | 81.3 | -3.3 | 67.7 |
| Selling prices | 61.7 | -3.0 | 48.7 |
| Average wages | 62.4 | -6.7 | 58.8 |
| Capacity utilisation (%) | 79.0 | 0.0 | 74.2 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | 56.5 | 1.7 | 53.9 |
| Machinery & Equipment | 50.4 | -11.3 | 50.3 |
| Metals products | 45.5 | -16.2 | 47.5 |
| Petroleum, coal, chemicals & rubber products | 56.4 | -8.5 | 51.7 |
| Building, wood, furniture & other | 42.4 | -15.8 | 50.0 |
| Textiles, clothing, footwear, paper & printing | 53.3 | -24.4 | 47.0 |
Results above 50 points indicate expansion.
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
