Judo Bank's most recent survey indicates that although the manufacturing sector in Australia continues to retract, the rate of contraction slowed in April, producing a manufacturing PMI score of 49.6. This marks an improvement from March's score of 47.3, but nevertheless falls short of the 50-point benchmark that delineates between economic expansion and contraction.
April saw new orders for Australian manufactured goods persist in their decline, thus extending their downturn to almost a year and a half. This trend has been attributed to subdued market conditions and high interest rates' effects, according to those surveyed. External market conditions also remained lackluster, contributing to a successive dip in foreign demand. On a more positive note, the rate of decline in new orders over the past three months, and in exports since August 2023, was the lowest recorded.
As a result, production rates in April decreased but at a more moderate pace than previous months, hitting the softest level since September 2023. The amount of outstanding work also decreased at a less severe rate, while employment levels remained relatively steady in April. Some businesses reportedly hired extra workers to manage workloads effectively.
