Australian manufacturing stabilising, according to PMI result

The Australian
Industry Group PMI for October has recorded an overall result of 49.4, with the
sector close to stable but still in contraction.

The result
was an increase of 2.9 points on September’s result, with four of five sub-indices
in positive territory (production, new orders, stocks and exports were all
above 50).

Any result
above 50 indicates expansion.

“The slide
in manufacturing activity we have seen for the past couple of months has eased,
with the sector broadly stable in October,” said Innes Willox, the AI Group’s
chief executive.

“However,
conditions remain patchy within the manufacturing sector with considerable
differences between sub-sectors and with production and new orders lifting,
whereas employment fell further during the month.”

The performance
follows October’s 46.5, August’s 47.3 and July’s 50.7 overall results.

As with the previous month, only the Food, Beverage & Tobacco (56.7) and Wood &
Paper (59.5) sub-indices were in growth.

Meanwhile, China’s official PMI shows the country’s factories slowing their output slightly with an overall result of 50.8 for October (down from September’s 51.1)