Australian manufacturing slipped back into the mire last month with the Australian Industry Group’s (AiG) Performance of Manufacturing Index slipping 0.8 points to 46.5. Scores below 50 reflect a contraction in the industry.
AiG said that “all of the activity sub-indexes, except supplier deliveries (up 4.1 points to 51.8), contracted during the month, with manufacturing exports experiencing the most significant deterioration, dropping 11.0 points to 42.2 – its lowest level in 18 months”.
That is not encouraging news and AiG CEO, Innes Willox, said that “falls in production, sales and new orders underpinned the further slowing of manufacturing in September and have left the sector struggling short of the recovery that was tentatively suggested in July”.
The Aussie dollar’s fall over the course of September was welcome, Willox said, but noted that “it will take some time before competitiveness in domestic and export markets improves”.