Australian Industry index, manufacturing PMI, construction PMI – all into deep contraction

<p>The latest from the Australian Industry Group is dour reading. <a href="https://www.aigroup.com.au/resourcecentre/research-economics/australian-industry-index/" target="_blank" rel="nofollow">Link here for more</a>, but in summary:</p><p>Key findings
</p><ul><li>The Ai Group Australian Industry Index indicated contracting conditions in June, for the fifteen months since the start of the current interest rate rising cycle.
</li><li>The Australian PMI indicator fell to -25.6, indicating contractionary conditions in manufacturing not seen since the height of the pandemic.
</li><li>The employment, industrial activity and new orders indicators all weakened into broader contraction.
</li><li>Price indexes all rose mildly in July, reflective of lower but still persistent inflation. </li><li>The average wages indicator surged by 14.0 points to its highest level, indicating ongoing wage pressures in the tight labour market.</li><li>
Capacity utilisation fell marginally to 79.0%, reflecting slowing industrial conditions.</li></ul><p>—</p><ul><li>The Australian Industry Index is a monthly index that measures changes in activity in Australia’s industrial sectors. </li><li>It provides diffusion indices which measure rates of changes in the level of industrial activity – expansion, stability or contraction. A positive reading indicates the activity is expanding; negative indicates contraction. The distance from 0 indicates the strength of the expansion or decline.
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The Australian Industry Index is based on monthly surveys from a national sample of Australian businesses. It uses ANZSIC industry codes for classifying sectors, and weights survey results using ABS data on gross value added by sector. Seasonal adjustment and trend calculations follow ABS methodology. Read more on our detailed methodology.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.