The AIG Australian Performance of Manufacturing Index jumped to 54.8 in April of 2019 from 51 in March. The reading pointed to the fastest expansion in factory activity in seven months, as output (+5.3 points to 58.1); new orders (+5.6 points to 55.6); exports (+3.2 points to 53.9); and capacity utilisation (+2.8 points to 83) rose. Additionally, both sales (+7.5 points to 53.9) and supplier deliveries (+11.5 points to 57.2) returned to expansion territory. Meanwhile, the job creation rate declined 5.1 points to 51.5 and the average wage index slowed to its softest rate since October 2017. On the price front, input prices eased while output cost rose. Manufacturing PMI in Australia averaged 50.59 from 2001 until 2019, reaching an all time high of 62.50 in March of 2018 and a record low of 29.47 in February of 2009.
Manufacturing PMI in Australia is expected to be 52.00 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 53.60 in 12 months time. In the long-term, the Australia Manufacturing PMI is projected to trend around 52.00 in 2020, according to our econometric models.