The Ai Group Australian Performance of Manufacturing Index edged up to 48.3 in December 2019 from 48.1 in the previous month which was the sharpest fall in factory activity since August of 2016. The reading also pointed to the second consecutive month of contraction in the manufacturing sector for the first time since mid-2015. Four of the seven activity indices contracted in December, with the recent weakness in new orders continuing, if at a milder rate of contraction (up 1.6 points to 48.8). Employment dropped further into negative territory (down 1.3 points to 46.0) and was joined by the finished stocks index (down 8.2 points to 44.4). More positively, supplier deliveries (up 6.8 points to 52.1) and exports (up 4.2 points to 54.0) rose into expansion. Manufacturing PMI in Australia averaged 50.78 points from 1992 until 2019, reaching an all time high of 62.50 points in March of 2018 and a record low of 29.47 points in February of 2009. source: Australian Industry Group
Manufacturing PMI in Australia is expected to be 53.60 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Australia to stand at 54.00 in 12 months time. In the long-term, the Australia Manufacturing PMI is projected to trend around 52.00 points in 2020, according to our econometric models.