The Australian Industry Group/Price Waterhouse Coopers Manufacturing Index is out, at

  • 45.2
  • (prior was 44.1)

While a reading below 50 is indicating contraction, those looking for a silver-lined-cloud can say at least it is a better reading than the previous month. Notable also for optimists is an expansion in the transport equipment sector (one of only 2 sectors to show expansion).

  • New orders declined.
  • Employment gained.

Factors for the overall weakness continue to be the usual suspects:

Soft demand;

weak selling prices,

higher energy charges;

stronger import competition;

and the strong Australian dollar continued to affect manufacturing growth in the month.

Australian PMI®: Manufacturing contraction continues in October (link to AIG/PWC report)