Australian PMI Manufacturing remains subdued in January
Manufacturing had a soft start to 2011 with the January Australian Industry Group - PwC Australian Performance of Manufacturing Index (Australian PMI®) relatively unchanged at 46.7 points, up 0.4 points and remaining below the critical 50 point level for the fifth consecutive month (readings below 50 indicate a contraction in activity).
Manufacturers remained cautious in the month, driving down inventories (with the inventories sub-index down 11.4 points) rather than ordering new stock. New orders fell in seven of the 12 sub-sectors. Falls were most marked in the construction materials; paper, printing & publishing and fabricated metals sub-sectors. In contrast, the chemicals, petroleum & coal; transport equipment; and machinery & equipment sub-sectors benefitted from strong post-Christmas orders.
Australian Industry Group Chief Executive, Heather Ridout, said: “The continuing subdued performance of the manufacturing sector reflects the complex nature of the Australian economy; consumers and businesses are cautious and there is a structural squeeze on the sector arising from the resources boom and related strength of the dollar. The immediate outlook is not encouraging with the forward-looking new orders sub-index falling for the fifth month in a row in January.
Source: http://www.aigroup.com.au
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