The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) rose 0.9 points to 50.2 in September, indicating a second month of broadly stable conditions following positive results since February (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: "Manufacturing activity held steady in September, demonstrating its resilience in the face of more uncertain economic conditions. However, the manufacturing employment index declined and is now in significant contraction. Manufacturers report that absenteeism, high labour costs and labour shortages are hampering their ability to maintain employment levels. Absenteeism will be helped somewhat by the welcome National Cabinet decision to scrap mandatory COVID isolation rules. However, ongoing labour shortages continue to point to the great national urgency to address skills gaps across the Australian economy," Mr Willox said.
Australian PMI®: Key Findings for September 2022
- Manufacturing was broadly stable in September, the second month of even results since February. Activity contracted in all sectors but chemicals and machinery & equipment.
- New orders and sales grew in September and the pace of growth improved from August.
- The employment index has fallen rapidly, which reflects labour shortage pressures. The wages index remains very high.
- Labour challenges remain an ongoing constraint and supply chain disruption continues to be a key concern for manufacturing similar to previous months.
| Seasonally adjusted | Index this month | Change from last month | Long-run average |
|---|---|---|---|
| Australian PMI® | 50.2 | 0.9 | 50.9 |
| Production | 47.7 | 2.0 | 51.5 |
| Employment | 39.8 | -7.7 | 49.1 |
| New Orders | 57.8 | 2.0 | 51.8 |
| Supplier Deliveries | 52.8 | 5.7 | 50.8 |
| Finished Stocks | 50.0 | 4.1 | 50.0 |
| Exports | 51.5 | 4.6 | 50.0 |
| Sales | 51.4 | 6.2 | 49.7 |
| Input prices | 84.8 | 3.1 | 68.5 |
| Selling prices | 70.2 | 1.1 | 50.2 |
| Average wages | 76.1 | 2.0 | 59.4 |
| Capacity utilisation (%) | 80.4 | 1.9 | 74.6 |
| Trend | Index this month | Change from last month | Long-run average |
| Food & Beverages | 48.6 | 3.5 | 53.6 |
| Machinery & Equipment | 55.4 | 10.5 | 50.5 |
| Metals products | 44.4 | 2.0 | 47.7 |
| Petroleum, coal, chemicals & rubber products | 56.9 | -5.2 | 51.8 |
| Building, wood, furniture & other | 44.6 | 1.3 | 50.3 |
| Textiles, clothing, footwear, paper & printing | 39.9 | -18.6 | 48.8 |
Results above 50 points indicate expansion. All indexes for sectors in the Australia PMI® are reported in trend terms (Henderson 13-month filter).
