According to the Performance of Manufacturing Index (PMI) Australian manufacturing retracted for a third consecutive month in January, recording an overall figure of 46.7. The January result is a further decline from December, receding by nearly a full basis point. The PMI is conducted monthly by PriceWaterhouseCoopers and the Australian Industry Group.
Individual sub-sectors results
- Food, Beverages and Tobacco
- Wood and Paper Products
- Petroleum, Coal, Chemical and Rubber Products
- Non-metallic Mineral Products
- Textiles, Clothing, Footwear, Furniture and Other Manufacturing
- Printing and Recorded Media
- Metal Products
- Machinery and Equipment
Margin pressures remain high across all manufacturing sub-sectors, as input costs (including wages) continue to outstrip selling prices. As PWC / AIGroup note, this has been a feature of the Australian economy since the Global Financial Crisis in 2009.
The Australian Industry Group report for January’s PMI can be accessed here… PMI Jan 2014