The Australian Industry Group Australian Performance of Manufacturing Index fell to 58.3 in October of 2018 from 59 in the previous month. New orders (-3.8 to 58.8); employment (-5.4 to 52.6); and average wages (-2.3 to 67) declined. On the other hand, faster increases were seen in production (+2.9 to 61.6); inventories (+2.3 to 56); sales (+2.3 to 59.9); supplier deliveries (+3.7 to 60.9) and capacity utilization (+1.5% to 80.4%). On the price front, input price inflation eased (-5.6 to 72.8) while selling prices accelerated (+0.9 to 57.1). Growth was driven by food & beverages and wood and paper sectors. Manufacturing PMI in Australia averaged 50.61 from 2001 until 2018, reaching an all time high of 63.10 in March of 2018 and a record low of 30.86 in February of 2009.
Manufacturing PMI in Australia is expected to be 57.10 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 58.35 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.