Rate of contraction for industry slowed in February

The rate of contraction experienced by the
country’s industry has eased, according to the Australian Industry Group’s PMI,
released this morning.

A score above 50 in the the PMI,
a seasonally-adjusted, survey-based national composite index, indicates expansion, with
a score below showing contraction.

The overall result of 48.6 for
February was an improvement on January’s 46.7, and production increased to be in
positive territory, at 51.5. However, the employment, stocks and supplier
categories continued to shrink.

“While an easing in the pace of
contraction and the lift in production in February are welcome, overall
conditions in manufacturing continue to reflect the intense pressures from the
strong dollar, high energy costs and the legacy of a long period of low
productivity growth,” said Innes Willox, the Ai Group’s CEO.

“Major efforts
are now needed both by businesses and governments to lift the pace of
innovation, to build business capabilities and to lift workforce skills in
manufacturing and in other trade exposed sections of the economy.”

He noted that the exports
sub-index, which fell under 30 to 25.8, remained “very weak”

Click here for more on February’s
PMI findings.

Image: welders.tokentools.com.au