September 1, 2021
Of the six manufacturing sectors in the Australian PMI only food and beverages expanded at a faster pace (seasonally adjusted) in August, increasing by 1.7 points to 56.5 (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion). The related sectors of chemicals (down 8.5 points to 56.4) and TCF, paper & printing (down 24.4 points to 53.3) also expanded, albeit at a slower rate. Machinery & equipment manufacturing stalled (down 11.3 points to 50.4) while metal products (down 16.2 points to 45.5) and building materials manufacturing (down 15.8 points to 42.4) contracted due to restricted manufacturing and construction activity in NSW and Victoria. “August saw a steep retreat from the healthy expansion in manufacturing performance that has characterised most of this year,” said Ai Group Chief Executive Innes Willox. “Lockdowns across the country, particularly in NSW and Victoria, were the major detractor from performance with ongoing strength outside of these states sufficiently…
