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5 Jan 2015
Australia: Contraction in conditions across the manufacturing sector
FXStreet (Bali) - The Australian Industry Group Australian Performance of Manufacturing Index fell by 3.2 points to 46.9 points in December (seasonally adjusted) after 50.1 in November.
Key findings
"The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell by 3.2 points to 46.9 points in December (seasonally adjusted), indicating another contraction in conditions across the manufacturing sector this month (readings below 50 points indicate contraction). The three-month moving average was almost unchanged, at 48.8 points."
"The Australian PMI® typically ‘leads’ the ABS output data for the manufacturing sector by around 3 months. Recent results from the Australian PMI® suggest manufacturing output (as measured by the ABS) is likely to be broadly stable in the December quarter of 2014."
"Only two of the seven activity sub-indexes of the Australian PMI® - that for employment and exports - were above 50 points in December. Manufacturing employment expanded mildly in December, although this was concentrated in food and beverages and a few smaller subsectors. Manufacturing exports also rebounded this month. The new orders sub-index fell sharply below 50 points (i.e. contraction) following two months of mild expansion. Manufacturing production contracted for a second month, while sales contracted for a seventh consecutive month. Supplier deliveries and stock levels also contracted in December."
"Four of the eight manufacturing sub-sectors in the Australian PMI® expanded (i.e. above 50 points) in December. The large food and beverages and the small wood and paper products sub-sectors continued to expand, while both the textiles, clothing and furniture, and non-metallic mineral products (mainly building materials) expanded for a second month."
"Respondents to the Australian PMI® welcomed the further depreciation in the Australian dollar, but noted that the level of the dollar continues to encourage strong import competition. Business sentiment and appetite for investment remain weak. The closure of Australian automotive assembly facilities which is now under way, plus the rapid decline in mining investment activity, are also weighing heavily on demand for locally made machinery inputs and components."
Key findings
"The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell by 3.2 points to 46.9 points in December (seasonally adjusted), indicating another contraction in conditions across the manufacturing sector this month (readings below 50 points indicate contraction). The three-month moving average was almost unchanged, at 48.8 points."
"The Australian PMI® typically ‘leads’ the ABS output data for the manufacturing sector by around 3 months. Recent results from the Australian PMI® suggest manufacturing output (as measured by the ABS) is likely to be broadly stable in the December quarter of 2014."
"Only two of the seven activity sub-indexes of the Australian PMI® - that for employment and exports - were above 50 points in December. Manufacturing employment expanded mildly in December, although this was concentrated in food and beverages and a few smaller subsectors. Manufacturing exports also rebounded this month. The new orders sub-index fell sharply below 50 points (i.e. contraction) following two months of mild expansion. Manufacturing production contracted for a second month, while sales contracted for a seventh consecutive month. Supplier deliveries and stock levels also contracted in December."
"Four of the eight manufacturing sub-sectors in the Australian PMI® expanded (i.e. above 50 points) in December. The large food and beverages and the small wood and paper products sub-sectors continued to expand, while both the textiles, clothing and furniture, and non-metallic mineral products (mainly building materials) expanded for a second month."
"Respondents to the Australian PMI® welcomed the further depreciation in the Australian dollar, but noted that the level of the dollar continues to encourage strong import competition. Business sentiment and appetite for investment remain weak. The closure of Australian automotive assembly facilities which is now under way, plus the rapid decline in mining investment activity, are also weighing heavily on demand for locally made machinery inputs and components."