Australia's manufacturing sector experienced a continued contraction in July, though at a diminishing rate, according to the latest survey from Judo Bank released on Thursday. The manufacturing Purchasing Managers' Index (PMI) scored 47.5 for the month.
While this is an increase from June's 47.2, it still falls short of the crucial 50-point threshold that differentiates expansion from contraction.
July saw manufacturing production decline at the quickest rate in four months, driven by a reduction in new orders. Panelists cited factors such as elevated interest rates and weakening demand conditions as contributors to this downturn. Additionally, export orders declined, with panelists pointing to deteriorating foreign demand conditions and increased competition as reasons for the decrease in new international work.
The overall contraction in new orders did somewhat ease from June, contrasting with export orders, which fell at their fastest pace in four years. Employment levels also saw a decline for the second consecutive month in July, partially due to redundancies amid the reduction in new work. The pace of job shedding was significant and was the steepest observed in over four years.
