We had the manufacturing PMI two days ago … which has only managed an expansion reading for 2 months In the two months following the 2013 Federal election) since June 2011
- Up 3.2 points, still in contraction
- 10-month high
- “a marked improvement in new orders and sales”
- new orders sub-index picked up 10.6 points to 53.6 points, signalling the first expansion on this measure since June 2012
- Sales sub-index moved up 2.5 points to be just above 50 points
- The remaining activity sub-indexes, however, remained below 50 points this month
Seasonal factors (e.g. Christmas and New Year holidays) and the extreme heat across parts of Australia appeared to have affected the services industries this month more than usual. Abstracting from these, respondents continued to suggest that a lack of confidence, in particular uncertainties surrounding the outlook for the domestic economy, is weighing on business activity. However, there are some green shoots that suggest conditions are improving for a number of services businesses.
