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Manufacturing falls again for 11th consecutive month

Australian manufacturing industry output fell again to a new record low during April, representing the 11th such loss for the industry in under a year.

Producers cut inventories at the fastest rate in the index’s history in the face of a continuing drop in demand for new goods, according to Australian Industry Group and PricewaterhouseCoopers.

The seasonally-adjusted Australian Industry Group – PricewaterhouseCoopers Australian Performance of Manufacturing Index (Australian PMI) fell by 3.1 points to a record low of 30.1 which is well below the 50-point mark that separates expansion from contraction. The April Australian PMI showed falls in all States.

Australian Industry Group (Ai Group) Chief Executive, Heather Ridout, said: “There was no let up for manufacturers in April, with weakness and uncertainty continuing to characterise the sector. Weak demand in both domestic and global markets contributed to the ongoing contraction of the sector. However, the inventory index is at record lows, which should suggest that production levels will have to lift soon to replenish stocks.

“The infrastructure roll-out and lift in housing starts have the potential to translate into new orders for local industry. However, a concerted effort to ensure that Australian-based companies are aware of the opportunities and have a fair and open access to them is important. Ai Group will be pushing this agenda.”

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