After getting into positive territory for the first time this year last month, the August result for the Performance of Manufacturing Index (PMI) decreased by 3.4 points, to 47.3 points. The retreat into negative territory is again a reflection of the concerns held in the Australian manufacturing industry of the continued strength of the local currency.
PMI August 2014 Result
The PriceWaterhouseCoopers / Australian Industry Group PMI result for August clearly shows how demanding conditions are in the Australian manufacturing sector at present.
Two manufacturing sub-sectors expanded for August, whereas there were six sub-sectors that contracted for the same period.
- Food, beverages and tobacco (53.8)
- Wood and paper products (66.3)
- Textiles, clothing, footwear, furniture and other manufacturing (40.6)
- Printing and recorded media (34.2)
- Petroleum, coal, chemicals and rubber products (44.1)
- Non-metallic mineral products (47.1)
- Metal products (47.4)
- Machinery and equipment (45.4)
As is almost the mantra for the Performance of Manufacturing Index every month, the gap between manufacturing input costs and manufacturing selling prices continues to grow. This statistic alone is enough to maintain pressure on an already struggling industry.
To download a two-page précis of the report, click here… PMI August 2014