April 3, 2015
While up slightly, by 0.9 points to 46.3, the Australian PMI remained well below the 50-point figure separating expansion from contraction. Among the activity indicators, manufacturing production (up 1.6 points to 46.6) and new orders (up 1.7 points to 45.9) continued to decline, and manufacturing sales (up 1.0 point to 46.2) contracted for a tenth consecutive month. Only the manufacturing exports sub-index signalled expansion (down 2.2 points to 51.7 points), as the impacts of the lower dollar continued to flow through. Once again, much of this growth in exports was concentrated in the food and beverages sub-sector, one of four manufacturing sub-sectors to expand in March (down 0.7 points to 59.4). “The lower Australian dollar continues to boost manufacturing export volumes,” said Ai Group Chief Executive, Innes Willox. “However, despite stronger residential building activity and some easing of the intense pricing pressures from imports flowing from the lower dollar, weak local demand continues to weigh heavily on activity. The non-metallic mineral products sub-sector…