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1 Jul 2014
Australian Manufacturing Index in contraction for 8th consecutive month
FXStreet (Bali) - The latest Australian Industry Group Australian Performance of Manufacturing Index remained in contraction for an eighth consecutive month in June, the official report notes, after a mild 0.3 points slide to 48.9 points (seasonally adjusted) vs 49.2 in May.
Key facts (AiG)
"This month, many respondents to the Australian PMI® cited concerns about the renewed strength of the Australian dollar, which has increased import competition and lowered demand for locally made products. This has most strongly affected businesses in the metal products, machinery and equipment, and petroleum, coal, chemicals and rubber products sub-sectors. Although the Australian dollar is currently lower than the levels seen between 2011 and 2012, it has appreciated by around 8.5% since February this year and is sitting around US$0.94."
"Across the eight manufacturing sub-sectors in the Australian PMI® , only the large food and beverages (52.5 points) and the smaller wood and paper products (54.2 points) sub-sectors expanded in June. The metal products, machinery and equipment, and petroleum, coal, chemicals and rubber products sub-sectors all contracted this month (i.e. below 50 points). "
"Both the production and sales sub-indexes declined into contraction June, following a brief expansion in May. Manufacturing employment contracted at a slower pace in June. More positively for the outlook, the new orders sub-index of the Australian PMI® stayed above 50 points this month (i.e. expansion). Conditions improved for manufacturing exports in June, despite the high dollar, but this month’s expansion in exports was limited to the food, beverages and tobacco sub-sector and a handful of businesses in other sub-sectors."
Key facts (AiG)
"This month, many respondents to the Australian PMI® cited concerns about the renewed strength of the Australian dollar, which has increased import competition and lowered demand for locally made products. This has most strongly affected businesses in the metal products, machinery and equipment, and petroleum, coal, chemicals and rubber products sub-sectors. Although the Australian dollar is currently lower than the levels seen between 2011 and 2012, it has appreciated by around 8.5% since February this year and is sitting around US$0.94."
"Across the eight manufacturing sub-sectors in the Australian PMI® , only the large food and beverages (52.5 points) and the smaller wood and paper products (54.2 points) sub-sectors expanded in June. The metal products, machinery and equipment, and petroleum, coal, chemicals and rubber products sub-sectors all contracted this month (i.e. below 50 points). "
"Both the production and sales sub-indexes declined into contraction June, following a brief expansion in May. Manufacturing employment contracted at a slower pace in June. More positively for the outlook, the new orders sub-index of the Australian PMI® stayed above 50 points this month (i.e. expansion). Conditions improved for manufacturing exports in June, despite the high dollar, but this month’s expansion in exports was limited to the food, beverages and tobacco sub-sector and a handful of businesses in other sub-sectors."