Not since the depths of the GFC have the Australian manufacturing and services sectors contracted so dramatically. The April Australian PMI number was 36.7, down a sobering 7.7 points from March. Any figure under 50 points on the Australian Performance of Manufacturing Index indicates a contraction in economic activity. It is particularly telling that the equivalent April figure for Spain was 44, while Greece recorded a solid 45 by comparison. Contractions in Australian activity were recorded in seven of the eight manufacturing sub-sectors. The Australian Industry Group (AIG) has reported that food, beverage & tobacco products, printing and recorded media, non-metallic mineral products, metal products and machinery and equipment, have been particularly impacted. Of all the states and territories, Victorian manufacturing seems to have taken the brunt of the contraction. The April Victorian PMI figure has slumped 8.4 points to 29.1. The AIG reports that in the face of sharp declines in prices and new orders, business activity has also been negatively affected by increases in wages and input prices. READ ON: http://www.bigpondmoney.com.au/the-canary-in-the-mine?ref=SCM-news-canary
