The Australian Industry Group (AiG) has just released its Performance of Manufacturing Index (PMI) for June and it is not a good read.
The headline PMI only fell 0.3 points to 48.9 points but at below the 50 level, this is in the contractionary zone and going the wrong direction.
More worryingly, the manufacturing production and sales both moved back into contraction, printing 49.4 and 46.7 respectively. New orders managed to keep its head above water but still lost 3.9 points to 51.2.
This is not the manufacturing sector that the RBA is looking for or the economy needs and the reversals in production, sales and orders are troubling.
AiG chief executive Innes Willox said that the high Aussie dollar is weighing once again with import competing businesses noting it as a specific concern.
We’ll hear from the RBA at 2.30pm today on whether this data and the high Aussie is troubling them as well.
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