Australian Industry Group Performance of Manufacturing Index for February
It had moved back into 'expansion' (ie. above 50) in January, higher again for Feb, to 54.0
AiG key points summary:
- best monthly result since October 2018
- signals a better month of recovery in February 2019, following an unseasonably slow summer, with weak growth in January and two flat months in November and December 2018
- The Australian PMI has been stable or positive (50 points or higher) since August 2016 (30 consecutive months), but its trend has suggested slowing growth rates since its recent peak in March 2018.
Conditions appear to be diverging in 2019, across the larger manufacturing sectors and their main locations
- Three of the six sectors in the Australian PMI® expanded in February, one was stable and two contracted (trend).
- Positive conditions in February stemmed from export orders, infrastructure, government contracts, defence and mining projects.
- Less positively, the downturn in housing construction is already affecting some sectors, as is the uncertainty of impending elections. Ongoing drought is detracting from trading conditions for manufacturers in NSW, South Australia and parts of Queensland.
