Australia Manufacturing PMI Improves To 47.5 - Judo Bank

(RTTNews) - The manufacturing sector in Australia continued to contract in July, albeit at a slower rate, the latest survey from Judo Bank revealed on Thursday with a manufacturing PMI score of 47.5.

That's up from 47.2 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

Manufacturing production contracted at the fastest pace in four months, underpinned by a reduction of new orders in July. Elevated interest rates and softening demand conditions were mentioned by panelists as reasons for the downturn in demand. Likewise for export orders, a deterioration of foreign demand conditions and intensifying competition underpinned lower inflows of new work from abroad.

The rate of contraction in overall new orders eased from June, in contrast to export orders falling at the fastest pace in four years. Employment levels declined for a second successive month in July, attributed partly to redundancies amid falling new work. The rate of job shedding was solid and the fastest in just over four years.