The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) increased a further 2.8 points to 58.5 in April – the highest monthly result since July 2021 as Australian manufacturing continued its strong post-COVID recovery with a third consecutive month in positive territory (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Innes Willox, Chief Executive of Ai Group the national employer association said: "The Australian manufacturing sector continued its current expansion in April following the disruptions of late 2021 and early 2022. The expansion is widespread with five of the six manufacturing sectors reporting improved performance in the month. Acceleration was highest in the chemicals and building product sectors. Across the broad manufacturing sector, production and domestic sales were both higher than in March although a fall in exports saw an easing in the pace of improvement in total sales. Employment fell in the month with many respondents reporting difficulties filling positions – particularly in skilled occupations. Price pressures continue with input prices and wages both rising further in April and selling prices edging higher as manufacturers seek to recover cost increases in the market. New orders increased further in April and, with many businesses feeling capacity constraints and difficulties in securing inputs and staff, the pressures on filling orders are set to continue in coming months," Mr Willox said
Australian PMI®: Key Findings for April 2022
|Seasonally adjusted||Index March 2022||Change from Feb 2022||Long-run average|
|Capacity utilisation (%)||79.6||-0.7||74.4|
|Seasonally adjusted||Index this month||Change from last month||Long-run average|
|Food & Beverages||53.2||6.3||53.6|
|Machinery & Equipment||52.6||-7.6||50.5|
|Petroleum, coal, chemicals & rubber products||63.9||9.8||51.8|
|Building, wood, furniture & other||70.6||9.6||50.3|
|Textiles, clothing, footwear, paper & printing||41.8||-17.2||48.8|
Results above 50 points indicate expansion. All indexes for sectors in the Australia PMI® are reported in seasonally adjusted terms.
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.
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