AiG Performance of Manufacturing Index

AiG's 'key points':

  • The 7th consecutive month above 50 ... longest unbroken run of expansion since 2010. Eight of the past nine months above

Of the seven activity sub-indexes in January

  • New orders, exports and production remained strongly positive
  • Employment, supplier deliveries and sales slipped back into contraction
  • Stocks (inventories) were replenished (59.2 points) after two months of contraction before the summer break
  • Four of the eight manufacturing sub-sectors expanded in January (in three month moving averages), down from five sub-sectors in December and Novembe
  • Positive trends identified by manufacturers in January included: the low dollar supporting exports to Asia and the Middle East and better local orders; improved local confidence; and stronger demand for local building materials, food, groceries and healthcare products
  • These positive trends were offset by slowing automotive production, mining projects and Government infrastructure projects
  • Input cost increases are becoming more widespread as drought affects supplies for food and beverages producers. Energy costs are also rising.

AUD/USD hasn't done a lot so far this month (!):