Improvements in production levels and new orders contributed to an easing in the rate of contraction in the latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®). The seasonally adjusted index firmed by 1.9 points to 48.6 (readings below 50 indicate a contraction in activity). Despite some encouraging signs with production up (51.5) and new orders steady (50), manufacturing employment (47.4), stocks (45.5) and supplier deliveries 44.9) remained in negative territory. Export markets remain particularly tough for manufacturers with the sub-index falling below 30 points. A ... (full story)