May 1, 2020
The sharp spike into positive conditions in March, on the back of the unusual surge in demand for manufactured food and groceries, was more than completely reversed in April. All activity indices plunged, with activity levels now reminiscent of the falls of 2009 during the Global Financial Crisis (GFC). Manufacturers cited a range of COVID-19 issues in April, with the most prevalent including: no new sales due to shutdowns; major customers cancelling orders; supply chain problems with inter-state freight movements and delays; and increased prices for raw materials. “April 2020 was devastating for Australia’s manufacturers and their employees,” said Ai Group Chief Executive Innes Willox. “Sales plummeted, new orders fell precipitously, production was culled and employment fell more steeply than at any time since the Australian PMI was first launched in 1992.” All…