Manufacturing off to a flying start in 2018
February 7th, 2018
Australia’s manufacturing sector has picked up where it left off in 2017, with the January PMI reading indicating faster growth than at the end of last year.
According to AI Group’s latest survey, the Australian Performance of Manufacturing Index (Australian PMI) increased by 2.5 points to 58.7 in January, adding to the longest manufacturing expansion in more than a decade.
The report also found that five of the eight manufacturing sub-sectors expanded in January, led by the very large food & beverages sub-sector (61.4 points).
The petroleum, coal & chemicals sub-sector recorded its highest monthly result in almost a decade (67.9 points), while the textiles & clothing sub-sector plunged deeper in contractionary territory with its lowest monthly result in a similar timeframe (33.5 points).
The input prices (down 1.1 points to 69.7) and wages (down 1.1 points to 59.1) sub-indexes continued to fall from their highest ever results in November, while the selling prices sub-index indicated mild price reductions in January (down 4.2 points to 49.2).
Commenting on the January reading, Ai Group Chief Executive Innes Willox said although January marked a 16th month of expanding or stable conditions for the Australian PMI, manufacturers continue to report difficulties accommodating recently elevated energy costs. Read more…