This is the first of two manufacturing PMIs due from Australia today
The Australian Industry Group Performance of Manufacturing Index, now even sadder!
Comes in at 45.4
- from prior of 48.3
- third consecutive month of contraction
- lowest since 2015
- Activity, new orders, deliveries, sales and exports all slowed in the last months of 2019
Sub measures down:
- production
- employment
- new orders
- supplier deliveries
- inventories
- exports
- sales
- capacity utilisation
Comments from AiG:
- The combined impact of global trade disruptions, slow local consumption, the residential construction downturn, drought and the ongoing bushfire crisis are taking their toll on local production this summer. Drought and fire continue to disrupt activity, reduce demand and push up prices for key inputs for food processors and other manufacturing sectors.
- Already in January, we are facing yet another new threat of global disruption and disaster, in the form of the coronavirus emerging from China. China and its Asian neighbours are key export markets for Australian food, beverages and other manufactured goods. The measures announced in response to the virus to date are timely and necessary, but they will likely dent demand for Australian manufactured exports in the short term.
Apart from that everything is just fine...
Meanwhile at the RBA forecasting unit:
