Australia AiG Performance of Manufacturing Index dropped to 46.7 in September, down from 49.3. Victoria reported the weakest result, down -6.4 to 37.6, due to stage four restrictions. But decline was also reported in New South Wales, down -6.7 to 44.3, and Queensland, down -3.8 to 43.3. Looking at some more details, production dropped -3.3 to 50.1. Employment dropped -2.5 to 47.7. New orders dropped -1.5 to 45.1. Exports dropped -5.7 to 46.5. Average wages rose 1.5 to 52.3.
Ai Group Chief Executive Innes Willox said: “The disappointing contraction of manufacturing and the slump in manufacturing employment in September is a timely reminder that recovery from the COVID-19 crisis, at least in its initial stages, will be tentative and prone to periodic setbacks… There is clearly a need for further fiscal stimulus in next week’s federal Budget to help rebuild the confidence that is needed to get businesses investing and households spending.”