The Australian PMI (measuring confidence in the manufacturing sector) continues to struggle in the negative. Any figure below 50 shows contraction. 51 and over demonstrate growth, expansion. While our neighbours across the Tasman enjoy 57 points we are hovering around the 46 mark.
Australian manufacturing production, sales and new orders are all dropping. Sales have been on a slippery slide for 10 months in a row. One area recorded improvement – manufacturing exports – thanks to the lower Aussie dollar is it went from almost 54 to 51.7.
As a result, manufacturers reduced supplier deliveries and stock inventory levels. So, the down turn ripple effect is impacting supply chain members as well.
The statistics, which appeared in AMTIL’s latest e-newsletter, concluded with “This month manufacturers noted the dampening impacts of further drops in mining construction; the progressive closure of automotive assembly; subdued business investment in equipment; and political uncertainties in Canberra and in NSW ahead of the state election.”