June 1, 2020
The Australian PMI recovered by 5.8 points to 41.6 in May, after experiencing the largest single-month drop in the index’s history in April (readings below 50 points indicate contraction in activity, with lower results indicating a faster rate of contraction). The decline slowed across all activity indices in May, except for the exports index which recorded its lowest ever monthly result as many overseas markets essentially shut down. Many manufacturers reported that orders from their regular customers have been delayed or cancelled altogether because of the pandemic. “While less of a fall than we saw in April, the further deterioration of manufacturing performance in May is deeply concerning,” said Ai Group Chief Executive Innes Willox. “From an already low base, manufacturing production and employment fell, and new orders dropped further. Other than the large food & beverages group which experienced a small gain, and the chemicals group which was broadly steady, all sectors of the manufacturing industry went further backwards in May. Manufactured exports…
