The AIG Australian Performance of Manufacturing Index rose to 52.5 in January 2019 from an upwardly revised 50 in the previous month. The reading pointed to the strongest expansion in factory activity in three months, as production jumped 4.9 points to 54.0 and new orders advanced 2 points to 52.3. Also, employment increased by 2.8 points to 51.1 and capacity utilization went up by 5.2 points to 77.5. Meanwhile, finished stocks declined by 7.8 points to 47.7, falling into contraction territory. On the price front, input prices declined 2.9 points to 70.3 and selling prices increased 5.6 points to 50.2. Manufacturing PMI in Australia averaged 50.55 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.