The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) rose 0.9 points to 50.2 in September, indicating a second month of broadly stable conditions following positive results since February (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: "Manufacturing activity held steady in September, demonstrating its resilience in the face of more uncertain economic conditions. However, the manufacturing employment index declined and is now in significant contraction. Manufacturers report that absenteeism, high labour costs and labour shortages are hampering their ability to maintain employment levels. Absenteeism will be helped somewhat by the welcome National Cabinet decision to scrap mandatory COVID isolation rules. However, ongoing labour shortages continue to point to the great national urgency to address skills gaps across the Australian economy," Mr Willox said.
Australian PMI®: Key Findings for September 2022
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 50.2 | 0.9 | 50.9 |
| Production | 47.7 | 2.0 | 51.5 |
| Employment | 39.8 | -7.7 | 49.1 |
| New Orders | 57.8 | 2.0 | 51.8 |
| Supplier Deliveries | 52.8 | 5.7 | 50.8 |
| Finished Stocks | 50.0 | 4.1 | 50.0 |
| Exports | 51.5 | 4.6 | 50.0 |
| Sales | 51.4 | 6.2 | 49.7 |
| Input prices | 84.8 | 3.1 | 68.5 |
| Selling prices | 70.2 | 1.1 | 50.2 |
| Average wages | 76.1 | 2.0 | 59.4 |
| Capacity utilisation (%) | 80.4 | 1.9 | 74.6 |
| Trend | Index this month | Change from last month | Long-run average |
| Food & Beverages | 48.6 | 3.5 | 53.6 |
| Machinery & Equipment | 55.4 | 10.5 | 50.5 |
| Metals products | 44.4 | 2.0 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 56.9 | -5.2 | 51.8 |
| Building, wood, furniture & other | 44.6 | 1.3 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 39.9 | -18.6 | 48.8 |
Results above 50 points indicate expansion. All indexes for sectors in the Australia PMI® are reported in trend terms (Henderson 13-month filter).
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
