Australian Industry Group (AiG) Performance of Manufacturing Index for September result.
Another move higher, buy 0.4 of a point, to 52.1
- prior was 51.7 (it had expanded for a second consecutive month in August, which was the first time since October 2013)
- Now racks up a third consecutive month in expansion
Aussie PMIs don't tend to move the FX market upon release, and today is no exception, but a positive nonetheless.
"Key findings" from AiG:
- The strongest reading since May 2015
- First run of three consecutive months of expansion since July 2010
- Four of the past five months have now seen results of above 50 (i.e.expansion)
- Four of the eight manufacturing sub-sectors expanded in September, as did six of the seven activity indexes
- Only stocks (inventories) declined
- Manufacturing employment stabilised this month, with the sub-index at 50.7 points
- The key reasons cited by respondents to the Australian PMI® for improving conditions in September were stronger local orders and exports, due to the lower Australian dollar. Increased residential construction is also strengthening demand for building materials and related housing products. Reduced orders from local automotive assemblers, mining and heavy engineering projects continue to take their toll on metal products and machinery.
