Australian PMI: Demand drags down manufacturing in November

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

Innes Willox, Chief Executive of Ai Group the national employer association said: “There are now signs of a slowdown in Australian manufacturing. Demand conditions in the market declined in November as deteriorating national and global economic conditions weighed on the industry. Longstanding supply-side problems, such as tight labour markets and supply chain disruptions, appear to have peaked but remain elevated. Energy prices continue to rise. Manufacturing is at risk of being squeezed between deteriorating demand conditions and persistent supply side pressures,” Mr Willox said.

Download full report

Australian PMI®: Key Findings for November 2022

  • Manufacturing fell into contraction in November following three months of stability. Five of the six sectors in the Australian PMI® are now in contraction, as are six of the seven activity indicators.
  • Demand-side conditions have deteriorated in the face of national and global economic uncertainty. Production, new orders and sales were all significantly down in November.
  • Supply-side pressures on manufacturing – tight labour markets and supply chain interruptions – appear to have peaked. But these pressures are yet to materially decline and remain well elevated on long-run trend.

View all Economic Indicators

Seasonally adjustedIndex this monthChange from last monthLong-run average
Australian PMI®44.7-4.950.8
Production40.2-7.451.5
Employment48.61.749.1
New Orders47.8-6.051.8
Supplier Deliveries39.2-9.150.8
Finished Stocks46.7-3.250.0
Exports51.72.350.0
Sales44.1-4.349.7
Input prices77.2-0.868.6
Selling prices64.0-3.550.4
Average wages69.9-1.159.6
Capacity utilisation (%)77.8-1.474.7
Seasonally adjustedIndex this monthChange from last monthLong-run average
Food & Beverages47.9-7.553.6
Machinery & Equipment45.9-5.250.5
Metals products43.81.547.7
Petroleum, coal, chemicals & rubber products46.83.251.8
Building, wood, furniture & other51.82.150.3
Textiles, clothing, footwear, paper & printing29.5-24.448.8

Results above 50 points indicate expansion.

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.