Manufacturing growth slows in September, weakness tipped to persist: S&P

The industry remained in growth for September, reporting its ninth straight expansionary result, though growth slowed over the month, according to the S&P Global Australia Manufacturing PMI.

According to a statement from S&P on Wednesday, the overall PMI recorded a result of 51.4 in September, down from 53.0 in August.

A result above 50 from the survey-based report indicates growth, and below it contraction. The September result suggests that “conditions continued to improve, albeit at a slower and only modest pace”. 

New orders fell slightly, “for the first time since June”, with Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, explaining that survey responses “showed that weaker market conditions and US tariffs negatively affected demand for goods in September.  

“Furthermore, the drop in the Future Output Index indicated that growth in the manufacturing sector is likely to further moderate in the coming months.”

Picture: credit Australian Department of Defence