Australia April manufacturing PMI 51.3 vs 49.8 in March, but headline flatters.
Australia April manufacturing PMI 51.3 vs 49.8 in March, but headline flatters. Input costs fastest in 4 years, supply delays worst since July 2022.
Output, new orders and employment all fell. Middle East war cited. Summary: The S&P Global Australia Manufacturing PMI rose to 51.3 in April from 49.8 in March, moving back above the 50.0 no-change mark, but the headline reading was driven by supply chain disruption and inventory building rather than genuine demand improvement Suppliers’ delivery times lengthened to the largest degree since July 2022, and because longer delivery times are inverted in the PMI calculation, this mechanically inflated the headline index Input cost inflation accelerated to its fastest pace in over four years, with nearly 69% of respondents reporting a rise in input costs during the month; higher fuel prices were identified as the principal driver Output price inflation also surged, reaching among the fastest rates in the survey’s decade-long history, pointing to significant pass-through pressure building in the manufacturing supply chain New orders continued to fall, with new export business declining for the first time in four months; output fell for the third consecutive month, with the latest reduction the fastest in 16 months Employment was scaled back for the second consecutive month as firms responded to lower order books through non-replacement of leavers and reduced working hours Despite lower output requirements, manufacturers increased purchasing activity and built stocks of inputs for the first time in seven months, with anecdotal evidence pointing to deliberate safety stock accumulation ahead of anticipated further price rises and supply delays Business confidence fell for a third straight month to its lowest since July 2024, with the Middle East conflict, associated inflation and cost-of-living pressures cited as key concerns Some residual optimism remained in the year-ahead outlook, with manufacturers expressing hope that an…