Manufacturing exports collapse

David Llewellyn-Smith

Wednesday 31 October 2012

The AiG PMI for October is out and, like clockwork, makes unhappy reading. The headline index rose marginally to 45.2:

Here are the sectors:

But new orders remained weak and exports collapsed to the darkest levels since the GFC:

This is a very dramatic drop and one wonders why? Sure the global economy is weak and the dollar stupidly strong but a sudden freeze like this must have a question mark over it.

Still, it is more evidence that the non-mining economy is still stuffed and there is no evidence in here for why manufacturing capex will rebound post mining boom.

Pmi Final Report Oct 2012

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.