BLBG: Australian Manufacturing Contracted for Fifth Month in January
Australian manufacturing contracted in January for a fifth straight month as measures of inventories, wages and supplier deliveries declined, a private survey showed.
The manufacturing index was 46.7, compared with 46.3 in December, the Australian Industry Group and PricewaterhouseCoopers said in a survey released in Canberra today. A number below 50 indicates contraction. Capacity utilization rose to 73.9 percent from 72.3 percent a month earlier, it showed.
The nation’s factories are lagging behind the mining industry, which is expanding to meet Chinese demand for raw materials and pushing the job market near a level the government views as full employment. The Australian currency’s 12 percent against the U.S. dollar in the past year has hurt export competitiveness.
“Consumers and businesses are cautious and there is a structural squeeze on the sector arising from the resources boom and related strength of the dollar,” Heather Ridout, chief executive officer of the industry group, said in a statement. “The immediate outlook is not encouraging.”
The index’s reading on wages dropped 0.7 point to 61.3, while inventories plummeted 11.4 points to 38.9, today’s report showed. Supplier deliveries slumped 4.5 points to 45.8.
A gauge of employment gained 4.9 points to 49 in January, and new orders increased 0.8 point to 45.1, the report showed. An index of production rose 3.7 points to 50.3.
The manufacturing survey, which is similar to the U.S. ISM index, polled more than 200 companies about production, new orders, deliveries, inventories and employment.
To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net
To contact the editor responsible for this story: Chris Anstey in Tokyo at canstey@bloomberg.net
