The AIG Australian Performance of Manufacturing Index dropped to 52.7 in May 2019 from 54.8 in the previous month, indicating a slower rate of growth. The production index experienced its largest single-month fall since October 2017 (-6.9 points), followed by declines in both supplier deliveries (-3.6 points) and new orders (-3.3 points). Meanwhile, the employment index rose 4.1 points and the finished stocks index increased 2.9 points. Metals and machinery & equipment respondents are reporting an overall downturn in demand for their sectors. Manufacturing PMI in Australia averaged 50.60 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 54.00 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 53.60 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.