October 1, 2018
The Australian PMI has indicated positive conditions (results above 50 points) for 24 consecutive months – the longest run of recovery or expansion since 2005 (readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase). Five of the eight manufacturing sub-sectors expanded in September (according to trend data), with expansions strongest in food & beverages, non-metallic minerals, and wood & paper products. Recovery in the petroleum, coal & chemicals sub-sector has been slowing in recent months and was broadly stable at 50.5 in September, with many respondents reporting that rising oil prices were putting upward pressure on input costs. “The run of strong performance by Australia's manufacturing sector hit a new milestone in September capping two years of growth,” said Ai Group CEO Innes Willox. “The food & beverages sub-sector has been the cornerstone of this run and has been solidly supported by the construction-related non-metallic mineral product…
