Australia’s AIG PMI for April declines but remains in expansion

By FXStreet Australia’s AIG Manufacturing PMI for April came in at 53.4 vs 58.1 last. Despite the decline, the data represents 10 months in expansion for the index, with AiG adding that it is the longest unbroken period of growth for the Australian PMI since September 2006.

Key findings

This April result comes off a very strong Australian PMI® in March (the highest since April 2004) and continues the current run of expansions to ten months, the longest unbroken period of growth for the Australian PMI® since September 2006.

The depreciation of the Australian dollar in recent years is still a central source of strength, assisting growth in exports and import-competing sales. Although the Australian dollar has appreciated again, key manufacturing sectors continue to expand, albeit at a slower pace.

Of the seven activity sub-indexes in the Australian PMI® all expanded in April except employment. Production (56.8 points), sales (56.8 points) and stocks (56.7 points) expanded strongly. New orders grew at a slower pace, but remained in mild expansion.

Five of the eight manufacturing sub-sectors in the Australian PMI® expanded in April (three month moving averages), the same number as March. The large food & beverages sub-sector, continued to outperform the other sectors, moving up to a …read more

Source:: FX Street