Australia AiG Performance of Manufacturing Index rose to 58.8 in February, up from 55.3, hitting the strongest level since March 2018. Input prices jumped above its long-run average (67.4 pts), by 9.7 pts to 74.1, highest since October 2019. Selling prices only rose slightly by 0.4 pts to 51.2.
Looking at other details, production rose 8.9 pts to 65.8. New orders rose 5.3 pts to 59.9. Employment rose 2.7 pts to 57.8. Average wages rose 1.8 to 58.2. But supplier deliveries dropped -2.6 to 53.2. Exports also dropped -7.3 to 54.1.
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Group Chief Executive Innes Willox said: “Australia’s manufacturers lifted production and employment in February as sales recovered a large share of the ground lost in 2020. Growth was distributed broadly across manufacturing… Manufacturers are generally positive about the outlook for the next few months with new orders coming in at a greater pace as restrictions on activity and cross-border travel are hopefully wound back.
