From the report, in brief:
- While the Manufacturing PMI points to an ongoing slowdown in the sector, it should be noted that manufacturing activity indexes remain well above levels historically associated with a recession for the industry or the broader economy.
- New orders and employment were also softer in February
- demand for labour has moved into contractionary territory over the last four months and remains near the recent low point
- the supply of labour due to surging net inward migration may have taken some pressure off labour shortages, the weakness in the manufacturing employment index is consistent with the demand for manufacturing sector labour weakening over the past six months
- There is evidence that supply chain disruptions are impacting the Australian manufacturing sector.
- Output price pressures also rose through February.
The flash readings are here:
