Dollar, rates, construction see Australian manufacturing grow

Australia’s manufacturing sector ended five straight months of contraction in May, according to the Australian Industry Group’s Australian Performance of Manufacturing Index.
The monthly PMI recorded an overall result of 52.3, up 4.3 points from April.
Any result above 50 indicates expansion.
Though local demand remained weak, five of seven sub-indices were in positive territory. Exports climbed 10.9 points to 58.3, and the new orders and production sub-indices both climbed back above 50.
In the previous month's result, every sub-index was under 50.
The CEO of the Ai Group, Innes Willox, said that the benefits of a lower Australian dollar were starting to show up as exports lifted.
“This was a clear positive for performance in May, together with strong residential construction activity and very low interest rates, and helped propel the sector into expansionary territory for the first time in six months,” he said in a statement.
“There remains a fine balance however and the rapid decline in mining construction, the progressive closure of automotive assembly and subdued local business investment in machinery and equipment continues to weigh on local demand.”
To see the results from April’s survey, click here.

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