Economic Buzz: Australia Manufacturing PMI Falls To 52.8 In October

25 Oct 2022 , 12:12 PM

The manufacturing sector in Australia continued to expand in October, albeit at a slower pace, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 52.8. Thats down from 53.5 in September, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. As a result of the slowdown in demand growth, manufacturers turned cautious with their purchasing activity. Firms nevertheless continued to expand their workforce capacity at a solid pace while citing difficulties in acquiring skilled labor. Issues of supply constraints also persisted as suppliers delivery times further lengthened in October, which alongside manpower shortages led to the accumulation of backlogged work. The survey also showed that the services PMI fell to a score of 49.0 from 50.6, while the composite also fell into contraction at 49.6 – down from 50.9 in September. Private sector output fell in October amid lower demand for Australian goods and services. Anecdotal evidence suggested a deterioration in economic conditions at the start of Q4 contributed to lower new business. Foreign demand continued to expand, however, supported by improvements in overseas business activity and favorable exchange rate conditions for international clients. Amid the fall in demand, the overall volume of incomplete business sank in October. This was largely underpinned by lower outstanding business in the service sector.Powered by Commodity Insights