Australian manufacturing industry shrinking again: PMI

Manufacturing
was back in contraction in August, with only two sub-sectors seeing growth and
the strong Australian dollar continuing to be a burden.

The monthly
Australian Industry Group Performance of Manufacturing Index survey has
recorded an overall result of 47.3, down from the previous month’s 50.7.

Any result
under 50 indicates contraction.

“The
manufacturing sector retreated from the cusp of expansion in August with
production, sales, new orders and employment all going backwards,” explained
the Ai Group’s chief executive, Innes Willox, in a statement.

New orders
were down after a run of three consecutive growth results.

Only the largest sub-sector – food, beverage and tobacco – and the small wood and paper products category were in growth.

As with the
previous month’s result, Willox noted that exchange rates continued to be a
difficulty for the industry.

“While
exports lifted in August, many respondents expressed ongoing concern about the
persistent strength of the Australian dollar, which is maintaining the intensity
of import competition,” he said.

To read
the full results, click here.