AIG Performance of Manufacturing index for October
Comes in at 50.2
- prior was 52.1
- Despite the fall from September's result it now four consecutive expansion results for this survey (the longest run of expansionary readings since July 2010)
'Key findings' from AiG:
- This month's result is only very mildly positive, suggesting stability rather than meaningful growth across Australia's manufacturing sectors.
- Four of the eight manufacturing sub-sectors expanded in October
- Among the seven activity sub-indexes, only exports (55.0 points) and supplier deliveries (51.3 points) were firmly positive and indicating expansion. The other five activity subindexes hovered just above or below 50.0 points in October, broadly indicating stability
- October included an extra public holiday in Victoria ... Other factors affecting manufacturers in October included the low dollar and better local confidence (both positives), but a rather mixed pipeline of new customers and new orders
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Little price response from the AUD, the China PMI later will be more of a focus.
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For those who may be reading the Australian Industry Group report on this index in full, you may notice extended comments on the new public holiday in Victoria (a key manufacturing state, along with NSW, in Australia) during October. Just a note, there is a public holiday in Victoria again tomorrow (Tuesday). The holiday in October was for a football game. The holiday tomorrow is for a horse race. I'll keep readers informed if there is a tiddly-winks tournament holiday declared.
