Manufacturing down for second straight month in September

The Australian Industry Group’s Performance of Manufacturing Index has shown the sector record a second consecutive month of contraction, with lockdown-affected Victoria contributing to the negative result.

The overall PMI was down 2.6 points to 46.7 in September. A result of 50 indicates no change, under 50 indicates contraction, and above 50, growth. 

As in August, Victoria — which contributes a quarter of the country’s GDP — was a drag on overall growth. Only South Australia (67.4, up2.1 points) was in positive territory.

The largest sector, Food and Beverages, was down by 0.3 points to 57.7. It was one of three manufacturing sectors above 50, with three contracting.

Among activity indices, production was down 3.3 to 50.1 points, employment down 2.5 to 47.7, and exports — which had been looking up — down 5.7 points to 46.5.

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