The manufacturing sector in Australia continued to expand in August, albeit at a much slower rate, the latest survey from Markit Economics showed on Monday with a 14-month low manufacturing PMI score of 51.7.
That’s down from 56.9 in July, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
New orders and output both fell into contraction territory, ending the 13-month growth streaks across both indices. While the lingering disruptions from the COVID-19 pandemic affected both demand and production, firms also reported that supply issues had constrained output. Indeed, suppliers’ delivery times continued to lengthen, and at the most severe pace since April 2020.
Price pressures eased slightly in August, though both input costs and output charges continued to increase at rates well above their respective survey averages. Firms were generally cautious with regards to their input inventories, which were broadly unchanged from July, but held a slightly more positive view towards output in the next 12 months.
The survey also showed that the services PMI fell from 44.2 in July to 43.3 in August, while the composite slipped from 45.2 in July to 43.5 this month.