Australia – AIG Performance of Manufacturing index for November: 50.1
- prior was 49.4
- So, up 0.7 of a point, and back into expansion
Key points from the AiG release:
- Indicating the slightest of expansions across the manufacturing sector this month (readings above 50 points indicate expansion)
- The three-month moving average also moved higher, to 48.7 points
- Recent results suggest manufacturing output (as measured by the ABS in gross value added volumes) is likely to be broadly stable in the December quarter of 2014
- Two of the five activity sub-indexes above 50 points in November. The new orders sub-index expanded again (i.e. above 50 points) this month, while supplier deliveries also moved into expansion
- In contrast, the production, stocks and exports subindexes all declined to below 50 points (i.e. contraction) in November, following a very mild expansion in October
- Manufacturing employment and sales continued to contract this month
- Four of the eight manufacturing sub-sectors in the Australian PMI® expanded in November. The large food and beverages and the small wood and paper products sub-sectors continued to expand, while conditions improved in the textiles, clothing and furniture, and non-metallic mineral products sub-sectors(i.e. above 50 points)
- All other sub-sectors continued to indicate contraction this month (three-month moving averages)
- Respondents to the Australian PMI® noted that despite the recent depreciation, the strength of the Australian dollar is still encouraging import competition. They also noted that business sentiment and appetite for investment generally remain weak. Comments from respondents this month suggest that the impending closure of Australian automotive assembly, as well as the rapid decline in mining investment activity, appear to be countering higher demand for locally made inputs and components flowing from stronger residential construction activity.
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AUD lower this morning
