The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) dropped by 1.5 points to 52.5 in July, indicating a weaker rate of expansion compared to the previous month (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 supply and labour constraints afflicting the Australian economy are weighing heavily on the manufacturing sector. Production and employment both fell in July, as manufacturers struggle with chronic labour shortages and supply chain interruptions. New orders rose this month, but our manufacturers simply can’t meet this demand without more workers. Manufacturing has a key role to play in reducing the inflationary pressures facing Australia. To unlock the industry's full potential we need to promptly address skilled labour shortages," Mr Willox said.
Australian PMI®: Key Findings for July 2022
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 52.5 | -1.5 | 50.9 |
| Production | 47.5 | -7.2 | 51.6 |
| Employment | 50.1 | -0.9 | 49.2 |
| New Orders | 59.9 | 4.2 | 51.8 |
| Supplier Deliveries | 47.4 | -4.1 | 50.8 |
| Finished Stocks | 55.1 | -1.6 | 50.0 |
| Exports | 51.2 | -1.8 | 50.0 |
| Sales | 54.0 | 9.0 | 49.7 |
| Input prices | 79.7 | -9.6 | 68.4 |
| Selling prices | 64.5 | -3.3 | 50.0 |
| Average wages | 62.8 | -6.5 | 59.2 |
| Capacity utilisation (%) | 81.9 | 0.0 | 74.5 |
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
| Food & Beverages | na | na | na |
| Machinery & Equipment | 48.8 | -8.6 | 50.5 |
| Metals products | 51.1 | 10.4 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 55.1 | -0.6 | 51.8 |
| Building, wood, furniture & other | 45.8 | -6.6 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 59.4 | -7.8 | 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.
Full list of 2022 Australian PMI® release dates.
Media Enquiries: Tony Melville: 0419 190 347
