Australian manufacturing recovered slightly in September, according to the Australian Industry Group’s Performance of Manufacturing Index.
The PMI result for the month, released yesterday, was 49.8, up 2.9 points and just under 50, the point which separates expansion and contraction.
The food and beverage (up 4.1 points) and machinery and equipment (up 4.6 points) sub-sectors led the way, both recording results of 52.8.
The overall patchiness of the PMI illustrated the fragility of the Australian manufacturing sector and the overall economy, said Australian Industry Group CEO Innes Willox. He also suggested that company tax rate cuts would help increase the current weak rates of business investment.
The result of 49.8 represents the second straight month of contraction, following 13 consecutive 50-plus PMI results.