MNI 5 Things: Australia AI Mfg Up; Signals Solid Growth Ahead

By Sophia Rodrigues

     SYDNEY (MNI)  - Following are the five main observations we made from

Australian Industry Group's Performance of Manufacturing Index for September

published Monday:

     --The index rose in September, up 2.3 points to 59.0 to mark 24 straight

months of expansion and the longest since 2005. Like August, all seven activity

sub-indexes were in expansion in September, and five of the eight sub-sectors

expanded in trend terms. 

     --Employment sub-index rose 4.8 points to 58.1, indicating a faster rate of

growth in manufacturing employment. This sub-index has aligned well with the

official ABS data that showed strong gains in manufacturing employment over the

year to August, and is pointing to further gains.

     --New orders rose 3.0 points to 62.6 and to the highest level since March

2018. Such an elevated level of orders points to strong growth in the

manufacturing industry in the coming months.

     --Input prices rose 0.9 to 78.3 points, staying at the highest level since

March 2011. The depreciation in the Australian dollar and rise in oil prices are

some of the reasons for increase in input costs. Wages sub-index also rose and

while selling prices fell 1.9 points in September, it remained high at 56.2 and

signals prices increases are fairly widespread.

     --Food and beverages sub-index eased 0.7 point to 59.1 but remains the best

performing sector. New orders and exports remained strong but input prices were

also rising.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

[TOPICS: MALDS$,M$A$$$,M$L$$$,MT$$$$]