The Ai Group Australian Performance of Manufacturing Index (Australian PMI®) declined by 1.5 points to 52.5 points in July 2022 (seasonally adjusted). This indicates a weaker rate of expansion across manufacturing in July. Results above 50 points indicate expansion, with higher results indicating a faster rate of expansion.
- Manufacturing activity slowed in July. Most subsectors eased but the metal products sectors recovered strongly.
- Labour challenges, supply chain disruptions and high energy prices remain the major structural constraints on manufacturing.
- Input prices declined for the first time since February 2022 but remain at very high levels. Employment declined, reflecting labour shortage pressures on manufacturing businesses.
- Most manufacturing activity indicators declined in July. However, new orders and sales strengthened, despite tight supply chain pressures.