AIG Performance of Manufacturing index - TERRIBLE result!

44.2 vs. 52.3 for the previous month

  • Lowest since July of 2013

As promised, here's the "more to come " bit

AiG's 'Key Findings":

  • The Australian PMI® typically 'leads' ABS data for manufacturing output by around 3 months
  • Recent results from the Australian PMI suggest output growth in manufacturing (measured as 'value added' by the ABS) is likely to have been flat in Q2 2015, after achieving small recoveries in industry-wide output in Q4 of 2014 and Q1 of 2015
  • Four of the eight manufacturing sub-sectors in the Australian PMI expanded in June: food and beverages (for a 13th month); wood and paper (for a fourth month); textiles, clothing, footwear, furniture and other manufacturing; and printing and recorded media.
  • Of the seven activity sub-indexes in the Australian PMI, only manufacturing exports expanded (readings above 50 points) in June, albeit at a very mild pace and largely concentrated in food and beverages exports
  • In contrast, manufacturing new orders, production, employment and supplier deliveries all contracted in June after a brief expansion in May
  • Manufacturing sales declined for a 13th month in June, signalling continued weakness in local demand
  • More positively, manufacturing stock levels have been broadly stable over the past two months

Manufacturing respondents indicated that local demand remained weak in June, despite increased residential construction activity and very low interest rates. Respondents reported that the progressive closure of local automotive assembly, which has been underway for some time, is now having a greater effect on downstream demand. Subdued consumer and business confidence, further declines in mining and other business investment in machinery and equipment, and a slow economic outlook, also continue to weigh on local demand.

AUD ... this data point does not usually have very much immediate impact ont eh FX market .... and today is no different .... AUD barely changed:

China PMIs and Australian building approvals should be more impactful.