April 2019 saw a solid increase to the key leading indicator of Australia’s manufacturing sector, the Performance of Manufacturing Index (PMI) from Australian Industry Group.
Australian manufacturing rose to 54.8 points (50 is breakeven) in April, continuing the run of unbroken positive results since August 2016. The food and beverage sector lead the charge, reporting higher-than-usual seasonal demand.
This result is even more positive, considering that the Australian federal election has been called and was known about throughout the month.
Individual Sector Results
- Food and beverages (61.8)
- Machinery and equipment (44.6)
- Metals products (44.7)
- Petroleum, coal, chemicals, and rubber products (52.2)
- Building, wood, furniture, and other products (57.6)
- Textiles, clothing, footwear, paper, and printing (56.2)
Machinery and equipment, and metals products, were the only two sectors to experience negative growth for the month, and were also the only two sectors to record a negative change in April. Machinery and equipment contributes $19.3B to the Australian economy, yet has been flat for a few months in a row, with the trend now the worst since September 2015.