The Australian Industry Group has just released its monthly Performance Of Manufacturing Index (AiG PMI). The seasonally adjusted index was up 4.4 points to 49.2 to remain just below the 50-point expansion level.
Respondents noted confidence had dipped as a result of the federal budget but this is a solid result with “a rise in manufacturing production and new orders in the month”.
“These sub-indexes improved to 51.6 points and 55.1 points respectively,” AiG said.
So depending on how you want to view this data, you can either say manufacturing is still in the contraction zone or it’s improving.
This data once again highlights that the Australian economy was healing before the budget. Now it is the budget and its impact on confidence which is the Australian economy’s number one hurdle.
Hopefully the Government’s sell job improves.