(RTTNews) - The manufacturing sector in Australia continued to contract in July, albeit at a slower rate, the latest survey from Judo Bank revealed on Wednesday with a manufacturing PMI score of 47.4.
That's up from 47.2 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Input costs increased, but at a pace that was softer than the series average. Meanwhile, selling prices rose only slightly amid competition for new orders. Suppliers' delivery times lengthened sharply, linked to shipping delays. Specifically, firms mentioned Singapore port congestion and issues in the Red Sea.
The report also showed that the services PMI dipped to 50.8 from 51.2 in June.
Impacting negatively on the sector was a renewed decline in new orders, the first since January. Panelists reported lower client demand. Meanwhile, new business from abroad decreased to the largest degree in 2024 so far
The composite index fell to 50.2 from 50.7 in June.
Output growth waned in response to further demand weakness. Total new business decreased for the second month running in July, and at a slightly faster pace than in June. Meanwhile, new export orders decreased at the quickest pace in almost four years.
