The second of the two purchasing managers index reports for June
Summary via CBA/Markit (bolding mine):
- Growth momentum in the Australian manufacturing sector picked up at the end of the second quarter.
- Demand improved at a sharp pace, prompting firms to raise employment and boost production.
- Furthermore, favourable operating conditions led to a strengthening of business confidence.
- At the same time, capacity pressures were evidenced by lengthening input delivery times and increased backlogs of work.
- sharp expansion in new orders
- almost one-third of the survey panel recording greater new sales
- improved demand from abroad were among the reasons cited for growth of order books
- Exports expanded at a similarly marked rate that was the quickest in four months
- Buoyed by these trends in demand, future output expectations were strongly positive in June
- Amid robust sales, production was raised … although the rate of increase quickened and was strong, it remained below its average
- additional staff were hired to boost operating capacities
- output capabilities were tested, as evidenced by the quickest rise in backlogs of work since January. Capacity issues across the supply chain were also apparent, with average input delivery times lengthening to the greatest extent in five months
- Worsening vendor performance was attributed to material shortages and strong input demand
- Panellists indicated that suppliers raised input prices further during June, with commodity prices, in particular metals, driving up cost burdens
- The rate of inflation was sharp and only slightly weaker than May's survey high. Strong demand enabled firms to share greater operating expenses with their clients, with output prices rising sharply by historical standards.
This is a positive report and should be AUD supportive (if anyone opays attention to these PMIs that is)
Earlier PMi from Australia: