Australian manufacturing industry shrinking again: PMI

Manufacturing was back in contraction in August, with only two sub-sectors seeing growth and the strong Australian dollar continuing to be a burden.

The monthly Australian Industry Group Performance of Manufacturing Index survey has recorded an overall result of 47.3, down from the previous month’s 50.7.

Any result under 50 indicates contraction.

“The manufacturing sector retreated from the cusp of expansion in August with production, sales, new orders and employment all going backwards,” explained the Ai Group’s chief executive, Innes Willox, in a statement.

New orders were down after a run of three consecutive growth results.

Only the largest sub-sector – food, beverage and tobacco – and the small wood and paper products category were in growth.

As with the previous month’s result, Willox noted that exchange rates continued to be a difficulty for the industry.

“While exports lifted in August, many respondents expressed ongoing concern about the persistent strength of the Australian dollar, which is maintaining the intensity of import competition,” he said.

To read the full results, click here.