Very brief summary points:
The Westpac-ACCI actual composite index 50.8 in Q4 2021
- was 51.2 in Q3 (and 63.1 in Q2)
Conditions in the December quarter proved to be more challenging than respondents anticipated
- staggered reopening from the delta lockdowns in NSW and Victoria crimped demand
- while significant supply headwinds continued, around labour and material availability
Expectations are upbeat ... expected composite jumped to 73.6, an historic high
- Respondents anticipate a burst of new orders in the opening quarter of 2022, including an element of catch-up, with a net 71% expecting an increase - a record high, coming off a low base.
More on the headwinds:
- Manufacturers’ ability to produce is being constrained by difficulties in finding labour, which are the most acute since 2008, and difficulties in sourcing inputs, which are the most pronounced since the oil shock of the mid-1970s. This reflects global supply bottlenecks and border closures.
- Manufacturers are facing intense and sustained cost pressures - at the highest level since 2008.
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Earlier in the session we got the November business survey from NAB:
