Australian manufacturing performance in May “deeply concerning”

Overall manufacturing activity was up slightly in May compared to April, but remains in “deep contraction” according to the Australian Industry Group’s Performance of Manufacturing Index.

The PMI was up 5.8 points to 41.6 last month, following the biggest-ever monthly fall in the index’s history.
A result of 50 indicates stability, below it contraction, and above it expansion.
Ai Group chief executive Innes Willox called the further deterioration following April’s result – which was experienced during GFC-level conditions – “deeply concerning.”
“From an already low base, manufacturing production and employment fell, and new orders dropped further,” said Willox in a statement. 
“Other than the large food & beverages group which experienced a small gain, and the chemicals group which was broadly steady, all sectors of the manufacturing industry went further backwards in May.”
All activity indices except supplier deliveries were below 50. Exports, down 11.5 to 31.1, recorded their weakest-ever result.
The industry is hoping the fiscal and monetary support that has been provided to the economy, together with the gradual lifting of restrictions that are inhibiting production and consumption alike, limit the extent of further deterioration and hasten the beginnings of a recovery,” added Willox.
Full results can be seen here.
Featured picture: Joe Castro/AAP
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(via Ai Group)

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