According to the latest survey from Judo Bank, Australia's manufacturing sector continued to experience contraction in October, but at a decelerated rate. The manufacturing Purchasing Managers' Index (PMI) reached 47.3, slightly up from 46.7 in September. This figure still sits below the 50-point threshold that demarcates expansion from contraction.
Market conditions remained subdued, contributing to another decrease in new orders for Australian manufactured goods, extending the nearly two-year trend of order contraction. Although the reduction rate in new orders was significant, it slowed compared to September. In contrast, export orders saw a sharper decline due to decreased demand from key overseas markets.
The lower volume of new orders led to another notable downturn in production levels. However, the decline's pace moderated from September. Notably, Australian manufacturers reduced their backlog of work at the briskest rate recorded since the beginning of the survey in May 2016.
