November 2022 – Overview

Demand drags down manufacturing in November

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell 4.9 points to 44.7 points in November 2022, indicating deteriorating conditions (seasonally adjusted). This is the first month of contraction following three months of flat conditions. Results below 50 points indicate contraction, with lower results indicating a faster rate of contraction.

Five of the six manufacturing sectors in the Australian PMI® were in contraction in November 2022. Building, wood and furniture products lifted marginally into mild growth on the strength of new orders, but all other sectors were in contraction and reported deteriorating demand conditions. Textiles, clothing, footwear, paper & printing declined preciptiously to be in serious contraction, while food & beverages and machinery & equipment fell into contraction for the first time. Metal products and the chemicals sector improved slightly on October, but remain in contraction.