The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell 4.9 points to 44.7 in November, indicating deteriorating conditions (readings below 50 points indicate contraction in activity, with lower results indicating a faster rate of contraction). This is the first month of contraction following three months of flat conditions.
Innes Willox, Chief Executive of Ai Group the national employer association said: "There are now signs of a slowdown in Australian manufacturing. Demand conditions in the market declined in November as deteriorating national and global economic conditions weighed on the industry. Longstanding supply-side problems, such as tight labour markets and supply chain disruptions, appear to have peaked but remain elevated. Energy prices continue to rise. Manufacturing is at risk of being squeezed between deteriorating demand conditions and persistent supply side pressures," Mr Willox said.
Australian PMI®: Key Findings for November 2022
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 44.7 | -4.9 | 50.8 |
| Production | 40.2 | -7.4 | 51.5 |
| Employment | 48.6 | 1.7 | 49.1 |
| New Orders | 47.8 | -6.0 | 51.8 |
| Supplier Deliveries | 39.2 | -9.1 | 50.8 |
| Finished Stocks | 46.7 | -3.2 | 50.0 |
| Exports | 51.7 | 2.3 | 50.0 |
| Sales | 44.1 | -4.3 | 49.7 |
| Input prices | 77.2 | -0.8 | 68.6 |
| Selling prices | 64.0 | -3.5 | 50.4 |
| Average wages | 69.9 | -1.1 | 59.6 |
| Capacity utilisation (%) | 77.8 | -1.4 | 74.7 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | 47.9 | -7.5 | 53.6 |
| Machinery & Equipment | 45.9 | -5.2 | 50.5 |
| Metals products | 43.8 | 1.5 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 46.8 | 3.2 | 51.8 |
| Building, wood, furniture & other | 51.8 | 2.1 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 29.5 | -24.4 | 48.8 |
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 2022 Australian PMI® release dates.
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