The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) rose by 4.8 points to 53.2 in February, reflecting mild improvements and a rebound into positive territory after a sharp decline in the December 2021-January 2022 report (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: "Australia's manufacturing sector edged back into expansion during February following the sharp labour and supply chain disruptions of the December-January period. Price and wage pressures continued in February with some easing in the pace of increase in input prices. At the same time, selling prices accelerated suggesting further recovery of earlier cost increases. Encouragingly, new orders were very strong and point to further strength over coming months. The performance of the machinery & equipment sector was the strongest on the back of healthy demand from construction, agriculture, and logistics businesses. The other manufacturing sectors reporting improved performance in February were chemicals; metals products; and textiles, clothing, footwear, paper & printed products. In contrast, the food & beverage sector declined again – although at a noticeably slower pace while the building products sector slipped into contraction. Employment eased across the sector while production lifted and sales growth edged ahead," Mr Willox said.
Australian PMI®: Key Findings for February 2022
| Seasonally adjusted | Index Dec & Jan | Change from Nov '21 | Long-run average |
|---|---|---|---|
| Australian PMI® | 53.2 | 4.8 | 50.8 |
| Production | 54.6 | 2.7 | 51.6 |
| Employment | 43.5 | -1.9 | 49.1 |
| New Orders | 59.8 | 8.5 | 51.6 |
| Supplier Deliveries | 49.0 | 11.2 | 50.8 |
| Finished Stocks | 55.9 | 3.4 | 49.9 |
| Exports | 42.6 | -2.5 | 50.0 |
| Sales | 51.4 | -0.9 | 49.6 |
| Input prices | 75.6 | -6.7 | 68.0 |
| Selling prices | 71.6 | 6.8 | 49.4 |
| Average wages | 64.9 | 1.4 | 58.9 |
| Capacity utilisation (%) | 80.6 | 4.4 | 74.4 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | 47.4 | 9.3 | 53.6 |
| Machinery & Equipment | 57.0 | 3.5 | 50.3 |
| Metals products | 51.6 | 2.8 | 47.5 |
| Petroleum, coal, chemicals & rubber products | 53.5 | 5.4 | 51.7 |
| Building, wood, furniture & other | 48.4 | -15.0 | 50.1 |
| Textiles, clothing, footwear, paper & printing | 52.3 | 0.3 | 47.0 |
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.
Full list of 2022 Australian PMI® release dates.
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