Australian PMI: Weakest manufacturing conditions in three years

Manufacturing Index
Manufacturing Index

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) is down by 3.5 points to 48.1 during November, it the minimum down reading since August 2016, strengthening calls for the Federal Government to consider greater stimulus options. A pace of contraction in new orders suggested a slow Christmas period may be ahead for Australian manufacturers.

The weaker manufacturing sector in November was driven by getting in employment and new orders and sales and production were barely normal. The overall weakness was not evident in the large food & beverages sector which reported a further firming of presentation. Both the machinery & equipment and the substances sectors also continued to expand in November with weakness intense in the metal products, building products and TCF & printing groups.

In falling by 3.5 points to 48.1 in November, the Australian PMI® slipped below the 50-point threshold unscrambling growth from contraction for only the third month since July 2015.