The AIG Australian Performance of Manufacturing Index rose to 54.0 in February 2019 from 52.5 in the previous month. The reading pointed to the strongest expansion in factory activity in four months months, as production jumped 3.9 points to 57.9 and employment surged 6.6 to 57.7. Also, exports jumped 3.1 points to 55.2 and sales 2.5 points to 54.4. On the other hand, new orders declined 0.3 points to 52.0 and supplier deliveries dropped 2.7 points to 52.9. On the price front, inputs prices edged up 0.7 points to 71.0 and selling prices 1.4 points to 51.6. Meantime, wages declined 2.3 points to 59.5 and capacity utilization edged down 1 point to 76.5. Manufacturing PMI in Australia averaged 50.57 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 56.20 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 53.20 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.