(RTTNews) - The manufacturing sector in Australia continued to contract in August, albeit at a slower rate, the latest survey from Jufo Bank revealed on Monday with a manufacturing PMI score of 48.5.
That's up from 47.5 in July, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Manufacturing production contracted in August and at the fastest pace since March amidst another marked reduction in new orders. Australian manufacturers often linked the fall in new work to the adverse impact of high interest rates and subdued demand conditions. That said, foreign demand conditions improved with new orders from abroad rising for the first time since May.
Moreover, the rate at which export orders increased was the most pronounced since September 2022. Sources of export orders included mainland China and Southeast Asian economies according to Australian manufacturers. The reduction in overall new orders led to a further depletion of backlogged work in August. A lack of capacity pressure resulted in headcounts being cut for a third successive month.
