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3 Mar 2014
Australian PMI contraction extends to four months
FXStreet (Bali) - The latest Australian Industry Group Australian Performance of Manufacturing Index rose by 1.9 points in February, to currently stand at 48.6 points (seasonally adjusted) vs 46.7 in January. Despite the improvement, the Australian PMI has now contracted in each of the past four months.
Key findings - Australian Industry Group
"This month the production sub-index of the Australian PMI® showed a strong improvement, increasing by 6.3 points to 51.5 points. The new orders sub-index also edged higher in February to reach 50.0 points, suggesting new orders were broadly stable in February. The sub-indexes for employment, stocks and supplier deliveries however, continued to indicate contraction in the month with readings below 50 points. Export markets remain extremely tough for manufacturers, with the sub-index falling below 30 points again in February."
"Manufacturing selling prices stabilised at 50.3 points in February, with this sub-index moving (marginally) above 50 points for the first time in almost three years. Input prices continue to rise strongly however and margins remain under significant pressure."
"Across the sub-sectors, the food and beverages sub-sector has now being expanding (readings above 50 points) since March 2013 (three month moving averages) y. The petroleum, coal, chemicals and rubber products sub-sector index indicated growth for a second month. In contrast, the large metal products and machinery and equipment manufacturing sub-sectors continued to contract in February (three month moving averages."
"Several respondents to the Australian PMI® said the Australian dollar is still too high to support their business. A number of respondents voiced their concerns for the broader manufacturing sector arising from Toyota’s announcement in early February that it will cease Australian automotive production in 2017. Feedback from participants indicates that this announcement has already affected business confidence."
Key findings - Australian Industry Group
"This month the production sub-index of the Australian PMI® showed a strong improvement, increasing by 6.3 points to 51.5 points. The new orders sub-index also edged higher in February to reach 50.0 points, suggesting new orders were broadly stable in February. The sub-indexes for employment, stocks and supplier deliveries however, continued to indicate contraction in the month with readings below 50 points. Export markets remain extremely tough for manufacturers, with the sub-index falling below 30 points again in February."
"Manufacturing selling prices stabilised at 50.3 points in February, with this sub-index moving (marginally) above 50 points for the first time in almost three years. Input prices continue to rise strongly however and margins remain under significant pressure."
"Across the sub-sectors, the food and beverages sub-sector has now being expanding (readings above 50 points) since March 2013 (three month moving averages) y. The petroleum, coal, chemicals and rubber products sub-sector index indicated growth for a second month. In contrast, the large metal products and machinery and equipment manufacturing sub-sectors continued to contract in February (three month moving averages."
"Several respondents to the Australian PMI® said the Australian dollar is still too high to support their business. A number of respondents voiced their concerns for the broader manufacturing sector arising from Toyota’s announcement in early February that it will cease Australian automotive production in 2017. Feedback from participants indicates that this announcement has already affected business confidence."