Australian manufacturing is back in the black – just – with The Australian Industry Group Performance of Manufacturing (PMI) increasing 0.7 points to 50.1 in November. This is the finest of margins and indicates only a small expansion across the sector.
The AiG said that “Two of the five activity sub-indexes were above 50 points this month, with new orders up 3.1 points to 54.3 and supplier deliveries climbing 7.2 points to 52.1. In contrast, the production, stocks and exports sub-indexes all declined below 50 points following very mild expansion in October, while manufacturing employment and sales continued to contract.”
That statement is a great summary of the Australian economy at the moment. Business is doing a little better, however employment prospects remain a little weak.
AiG CEO Innes Willox said the results are “welcome signs of the resilience of the sector in the face of still-testing conditions. The lower dollar, an easing in energy costs, moderate wages growth and relatively low interest rates are all helping to underpin the sector’s performance.”
That’s good news for manufacturing and hopefully if the expansion builds employment will follow.