Four of the six Australian manufacturing sectors expanded in June according to Ai Group’s Performance of Manufacturing Index (Australian PMI), with the textiles, clothing, footwear (TCF), paper & printing products sector reporting the strongest result.
|TCF, paper & printing products, Australian PMI, June 2022|
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) rose by 1.6 points to 54.0 in June, indicating mild growth as the index recorded a fifth consecutive month in expansion (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
“Manufacturing continued to expand moderately in June,” AiG said. “Most subsectors improved but the metals sector declined dramatically. Labour challenges and supply chain disruptions remain the major structural constraints on manufacturing. Input prices rose again to mark the highest-ever reading in the Australian PMI series.
“Most manufacturing activity indicators expanded in June. However, sales declined and are now in contraction, reflecting weaker market conditions than in past months. Manufacturing exports rebounded strongly, as shipping issues earlier in the year have cleared.”
New orders accelerated in three of the six manufacturing sectors, and was strongest in the TCF, paper and printing products sector.
The index for the TCF, paper and printing products sector “recovered by a further 19.2 points to be 67.2 points, indicating strong expansionary conditions in June (seasonally adjusted)," Ai Group said. "Onshoring of work back to Australia and strong demand from the mining sector improved sales. Labour shortages and input price increases constrained activity in June."
The textiles, clothing, footwear (TCF), paper & printing products sector employed 80,000 people in May 2022 (9% of manufacturing employment, ABS data). The sector makes textiles, clothing, footwear, paper, cardboard, packaging, printed products and recorded media.