The Australian Industry Group’s PMI released this morning recorded a result of 58.3. It is down a fraction of a point, but still well above 50, the line separating contraction and expansion. It continues the best run of 50-plus results since 2005.
According to the PMI, only one sub-sector, machinery and equipment, did not grow over October.
“While manufacturers are working hard to sustain these robust conditions, the uncertainties hanging over energy prices and energy policy continue to cloud the medium and longer-term outlook, particularly for the more energy-intensive segments of the industry,” The Ai Group’s Innes Willox said of current challenges.
“The economic uncertainty is also impacted by drought, global trade disputes, the fluctuating dollar, declining consumer sentiment, fallout from the Royal Commission on lending and the looming Federal election.”