Australian AiG Performance of Manufacturing Index rose to 41.6 in May, up from 35.8. The manufacturing sector still contracted in the month, but at a slow pace. Production improved by 7.1pts to 42.4. Employment rose 6.4 pts to 40.7. New orders rose just 2.4 to 35.1. However, exports index dropped -11.5 pts to 31.1, hitting a new record low.
AIG noted: Exporters noted that many overseas markets have essentially shut down. They also noted higher prices for air freight into international markets that are still open to them. … Many manufacturers reported that orders from their regular customers have been delayed or cancelled altogether because of the pandemic.”
