The AIG Australian Performance of Manufacturing Index went up 1.8 points from the previous month to 53.1 in August 2019, the highest since April. Production and sales rose back into expansion in August after contracting in July; and exports and new orders grew at a faster pace. Meanwhile, the employment index indicated slower job growth. Demand from defence and mining projects lifted the machinery and equipment sector into expansion, but the metals sector and other heavy industrial manufacturers are still reporting tough trading conditions. The food & beverages sector is still growing but recorded its lowest monthly result since November 2016. Manufacturing PMI in Australia averaged 50.79 from 1992 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 52.00 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 53.80 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.