November 1, 2019
Three of the six manufacturing sectors in the Australian PMI expanded in October (according to trend data), led by food & beverages (up 1.3 points to 61.8) and machinery & equipment (up 0.2 points to 54.2), which increased their pace of expansion (readings above 50 points indicate contraction in activity, with the distance from 50 indicating the strength of the increase). The chemicals sector (down 0.7 points to 52.0) expanded, albeit at a slower pace in October. Metal products (up 1.5 points to 43.5), building materials, wood & other manufacturing (down 3.4 points to 48.5) and TCF, paper & printing (up 1.1 points to 43.8) sectors all contracted. “The broader manufacturing sector expanded in October with strong contributions from businesses in the food & beverage, chemicals and machinery & equipment sectors,” said Ai Group Chief Executive Innes Willox. “Growth in these sectors was sufficient to offset further weakness among building products, metals and TCF, paper & printing…