The Australian PMI (Performance of Manufacturing Index) rose last month for the first time since last year, easing decline in the sector for by 7.4 points up to 37.5.
The PMI — presented by the Australian Industry Group (Ai Group) and PricewaterhouseCoopers — was still below the 50-point ‘safe’ mark that separates expansion from contraction, however things seem to be looking up for the manufacturing industry.
Ai Group chief executive, Heather Ridout, said that the May PMI is much more in tune with those in other countries.
“The slowing of falls in new orders and production across the sector in this month’s data may indicate that stimulatory fiscal and monetary policy is having a stabilising effect,” she said.
“However, while six of the twelve sub-sectors experienced an easing of decline in activity, manufacturing has completed a yearlong run of falls in activity and production. Uncertainty is pervasive in the industry and confidence remains very fragile.”