More Evidence That Australia Is In Big Trouble

Australia’s manufacturing PMI fell to 44.1 in September from 45.3 in August.

Any reading below 50 signals contraction in the industry.

“Most worryingly for the outlook, the contraction in manufacturing new orders extended into a seventh month,” wrote the Australian Industry Group.

Australia’s economy boomed as its huge mining industry benefited from surging growth in the emerging markets.

But with those growth economies slowing, Australia is getting slammed.

Australia is “a credit bubble built on a commodity market built on an even bigger Chinese credit bubble,” wrote SocGen’s Dylan Grice.

Also Sprach Analyst pointed us to a breakdown of the latest PMI report from the Australian Industry Group:

australia pmi

Photo: Australia Industry Group

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