The country’s manufacturing industry has continued to struggle in its malaise in May, despite a small upswing over the month according to the latest Australian Performance of Manufacturing Index by the Australian Industry Group (Ai Group).

Ai Group’s Index hit a 7.1 increase over the month to end at 43.8 points over the month, where anything below 50 represents a contraction and its distance from 50 indicative of the strength of its decline.

"The Australian PMI® recovered somewhat in May from the plunge in April, but the overall landscape across manufacturing is still one of contraction,” Ai Group’s Chief, Innes Wilox, said.

“The welcome drop in the Australian dollar in recent weeks will provide breathing space for many exporters and will help lift confidence. However, the dollar remains well above its post-float average and there will need to be sustained falls if we are to see a real impact on import-competing manufacturers and exporters.”

Australian PMI®: Key Findings for May:

  • The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) was 7.1 points stronger in May although at 43.8 is still well in the red.
  • May marks the 23th consecutive month of manufacturing contraction.
  • The new orders sub-index was up 9.9 points to 42.3.
  • The production sub-index rose 13.0 points to 46.1 in the month.
  • Input prices (54.7) and wages (52.9) growth are at their lowest levels since June 2009.
  • No state or sub-sector recorded an expansion in manufacturing in May.

The full report can be found here