Australian PMI: Manufacturing stabilises in November

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) declined by 4.2 points to 52.1 in November, indicating expanding conditions but at a slower rate than in October (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).

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Ai Group Chief Executive Innes Willox said: “The manufacturing sector was broadly stable in November after a return to positive territory in October. Growth was strongest in the diverse textiles, clothing, footwear, paper & printing group, the machinery & equipment sector as well as in the metal products and chemicals sectors. The large food & beverages sector declined sharply in the seasonally adjusted measure as exports, supermarket sales and low demand in tourism areas took a toll. November saw the long-delayed resumption of growth in Victoria – its first month of manufacturing expansion since March. In contrast, South Australia, while continuing to grow, was held back from a more positive result by the lost production in its three-day shutdown. Encouragingly, both new orders and employment continued to grow in November, pointing to the prospect of a continuing recovery as we head towards the end of the year,” Mr Willox said.

Australian PMI®: Key Findings for November

  • All seven activity indices in the Australian PMI® declined from the October results, but four remained in expansion in November (see table below). Finished stocks fell into contraction (down 6.9 points to 44.3) while exports were largely stable across most manufacturing sectors (down 2.7 points to 50.0).
  • Four of the six manufacturing sectors in the Australian PMI® expanded in November, but the building materials, wood, furniture & other products sector (down 11.7 points to 43.8) and the large food & beverages sector (down 20.8 points to 43.1) slid steeply into contraction – the latter’s large decline due to various factors including falling supermarket sales, low demand in tourism regions and flat export markets.
  • The input price index eased slightly in November (down 2.0 points to 64.6), indicating marginally slower price increases, while selling prices remained stable (down 4.0 points to 49.6).
  • The average wages index (up 2.9 points to 60.2) rose back above its long-run average (58.6 points), most likely on the back of manufacturing award increases implemented in November.

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Seasonally adjusted

Index this month

Change from last month

Long-run average

Seasonally adjusted

Index this month

Change from last month

Long-run average

Australian PMI®

52.1

-4.2

50.5

Food & beverages

43.1

-20.8

53.6

Production

52.5

-2.6

51.2

Machinery & Equipment

60.0

6.2

49.8

Employment

52.8

-2.5

48.8

Metals products

56.6

13.7

47.3

New Orders

53.3

-5.1

51.1

Petroleum, coal, chemicals & rubber products

57.9

-2.4

51.3

Supplier Deliveries

53.5

-5.3

50.9

Building, wood, furniture & other

43.8

-11.7

49.8

Finished Stocks

44.3

-6.9

49.5

Textiles, clothing, footwear, paper & printing

71.6

17.3

46.6

Exports

50.0

-2.7

49.9

Sales

50.7

-5.7

49.1

Input prices

64.6

-2.0

67.4

Selling prices

49.6

-4.0

48.2

Average wages

60.2

2.9

58.6

Capacity utilisation (%)

77.8

-0.8

73.8

Results above 50 points indicate expansion.

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