Activity across the Australian manufacturing sector contracted for a fifth consecutive month in April, although the pace of contraction eased, with the Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) moving up 1.8 points to 48.0 (readings below 50 indicate a contraction in activity, with the distance from 50 indicative of the strength of the decrease).
Ai Group Chief Executive, Innes Willox, said: “Weak local demand continues to weigh heavily on Australian manufacturing. While there are benefits from strong residential construction activity, low interest rates, and the weaker Australian dollar, these are being outweighed by subdued local business investment in equipment, the ongoing drop in mining construction and the progressive closure of automotive assembly. While another cut in interest rates may help boost demand, budgetary measures, particularly those targeting increased investment are more likely to provide the lift the domestic economy needs.”