FX.co ★ Australia's Manufacturing Sector Sees Continued Growth

The S&P Global Australia Manufacturing PMI reported a slight decline to 51.7 in April from 52.1 in March, indicating ongoing improvement within the sector. Despite a deceleration from the 29-month high reached in March, growth remains robust. For the third time this year, output has increased, propelled by new orders as companies emphasize development plans and stockpiling. Employment levels also rose for the second consecutive month, marking the fastest pace of job creation in two years. However, manufacturers are experiencing backlogs due to heightened demand coupled with supply chain delays, resulting in extended lead times for the twenty-second consecutive month. This increase in orders and production has fueled purchasing activity, thereby raising inventories. Nonetheless, business confidence has dipped to its lowest level in six months, driven by escalating trade uncertainties and input cost inflation, which has resulted in the most significant price increases since February 2023.