Australian manufacturing slump continues in September PMI

The
manufacturing sector’s contraction increased slightly in September, with the Australian Industry Group PMI registering an overall result of 46.5.

The
overall result was down 0.8 points from August’s 47.3, which represented a slide back into contraction after July’s 50.7.

Any
result under 50 indicates contraction.

“Falls
in production, sales and new orders underpinned the further slowing of
manufacturing in September and have left the sector struggling short of the
recovery that was tentatively suggested in July,” said the Ai Group’s chief
executive, Innes Willox, in a statement.

As with August, the only sub-sectors in growth in the PMI were Food, Beverage &
Tobacco and Wood & Paper Products.

Among
the activity sub-indices all were under 50, except for supplier deliveries.

Willox
also said the fall in the Australian dollar was welcome, but it would take some
time before Australian businesses would become more competitive at home or
abroad.

“Respondents
to the Australian PMI suggested that the winding down of Australian automotive assembly and the
ongoing downturn in mining construction activity are dampening demand for
locally-made products and components,” he added.