Australia’s July manufacturing PMI report is out, and it looks ugly.
The headline number fell to 42.0 from 49.6 a month ago.
Any number below 50 signals contraction.
“Manufacturers are telling us that, while the fall in the Australian dollar and the May interest rate cut have been extremely welcom, they have not yet been enough to turn around a very challenging business environment, locally and internationally,” said the Austrailia Industry Group.
The production sub-index tanked to 37.7, down 12.5 point from July.
The employment sub-index fell 4.2 points to 42.7.
Meanwhile, the input price index surged to 70.9, up 14.5 points.
The wage index spiked to 68.7, up 14.9 points.