The manufacturing sector’s contraction increased slightly in September, with the Australian Industry Group PMI registering an overall result of 46.5.
The overall result was down 0.8 points from August’s 47.3, which represented a slide back into contraction after July’s 50.7.
Any result under 50 indicates contraction.
“Falls in production, sales and new orders underpinned the further slowing of manufacturing in September and have left the sector struggling short of the recovery that was tentatively suggested in July,” said the Ai Group’s chief executive, Innes Willox, in a statement.
As with August, the only sub-sectors in growth in the PMI were Food, Beverage & Tobacco and Wood & Paper Products.
Among the activity sub-indices all were under 50, except for supplier deliveries.
Willox also said the fall in the Australian dollar was welcome, but it would take some time before Australian businesses would become more competitive at home or abroad.
“Respondents to the Australian PMI suggested that the winding down of Australian automotive assembly and the ongoing downturn in mining construction activity are dampening demand for locally-made products and components,” he added.