This is the ninth straight reading below 50, and any reading below 50 signals contraction.
Australia’s economy is driven largely by its mining industry, which in turn is sensitive to global growth. As China’s economy decelerated, Australia got slammed. And it’s reflected in the dismal exports sub-index of the PMI report.
“Reflecting weakness in the global economy, manufacturing exports recorded another month of significant decline, albeit at a more moderate pace,” wrote the Australian Industry Group. “The exports sub-index rose 5.9 points to 35.6 in November, marking the ninth consecutive month of contraction.”
The improvement in the low number likely reflects what appears to be the budding recovery in China.
Here’s a historical look at the PMI report:
Here’s a breakdown of the sub-indices: