The AIG PMI is out this morning and although still contracting shows a decent bounce:
Manufacturing activity contracted for a fourth consecutive month in June, but the pace of contraction slowed significantly. The seasonally adjusted Australian Industry Group-PwC Australian PMI® rose 4.8 points to 47.2 (readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease).
- Despite the continuing decline in total manufacturing activity, four sub-sectors reported an expansion in June. These were clothing & footwear; paper, printing & publishing; transport equipment; and machinery & equipment.
- Survey respondents remained cautious about the outlook, citing softer demand, the strong Australian dollar, the impending carbon tax and import competition as inhibitors of activity.
- Wages and input costs continued to rise in June, while the decline in selling prices persisted.
The bounce was driven by new orders:
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But there was an improvement in broader sub-component too. Still contracting but better news.
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