The rate of contraction experienced by the country’s industry has eased, according to the Australian Industry Group’s PMI, released this morning.
A score above 50 in the the PMI, a seasonally-adjusted, survey-based national composite index, indicates expansion, with a score below showing contraction.
The overall result of 48.6 for February was an improvement on January’s 46.7, and production increased to be in positive territory, at 51.5. However, the employment, stocks and supplier categories continued to shrink.
"While an easing in the pace of contraction and the lift in production in February are welcome, overall conditions in manufacturing continue to reflect the intense pressures from the strong dollar, high energy costs and the legacy of a long period of low productivity growth," said Innes Willox, the Ai Group’s CEO.
"Major efforts are now needed both by businesses and governments to lift the pace of innovation, to build business capabilities and to lift workforce skills in manufacturing and in other trade exposed sections of the economy."
He noted that the exports sub-index, which fell under 30 to 25.8, remained “very weak”
Click here for more on February’s PMI findings.