(RTTNews) – The manufacturing sector in Australia continued to contract in October, and at a slightly faster pace, the latest survey from Judo Bank revealed on Thursday with a manufacturing PMI score of 46.6.
That’s down from 46.7 in September, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
Subdued market conditions and weak underlying demand for goods kept new orders for Australian manufactured goods contracting at a sharp pace at the start of the fourth quarter. This led to another steep decline in production, the fastest in 53 months.
The survey also showed that the services PMI rose to 50.6 in October from 50.5 in September.
Incoming new business expanded at a quicker pace in October, driving higher services activity. Improvements in domestic demand underpinned new business growth, whereas export business contracted at a more pronounced pace in October.
The composite index improved to 49.8 in October from 49.6 in September.
The near-stabilization of private sector output again masked sector divergences, as a faster manufacturing output contraction more than offset a quicker rise in services activity.
