The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) increased a further 2.5 points to 55.7 in March – the highest monthly result since July 2021 (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 grew faster in March as manufacturers added new staff, lifted sales and continued to expand production (although at a slower pace than in February). Five of the six manufacturing sectors saw improved performance with businesses in machinery & equipment, building products and the diverse textiles, clothing, footwear, paper & printing group leading the way. The food & beverages sector, which is the largest area of Australian manufacturing was alone in seeing conditions deteriorate in March. Across manufacturing pressures from wages and input prices stepped up while selling prices growth saw manufacturers recover some cost increases in the market. There was an encouraging rise in new orders in March although with labour and input supply constraints growing, manufacturers will be stretched to fill orders in a timely way," Mr Willox said.
Australian PMI®: Key Findings for March 2022
|Seasonally adjusted||Index March 2022||Change from Feb 2022||Long-run average|
|Capacity utilisation (%)||80.3||-0.3||74.4|
|Seasonally adjusted||Index this month||Change from last month||Long-run average|
|Food & Beverages||46.9||-0.5||53.6|
|Machinery & Equipment||60.2||3.3||50.5|
|Petroleum, coal, chemicals & rubber products||54.0||0.6||51.8|
|Building, wood, furniture & other||61.0||12.6||50.3|
|Textiles, clothing, footwear, paper & printing||59.0||6.7||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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