Updated
Updated · Action Forex · Aug 21
Australia Factory Output Contracts at 49.7 in August as Cost Pressures Slow Private-Sector Growth
Updated
Updated · Action Forex · Aug 21

Australia Factory Output Contracts at 49.7 in August as Cost Pressures Slow Private-Sector Growth

3 articles · Updated · Action Forex · Aug 21

Summary

  • Australia’s manufacturing output PMI fell to 49.7 in August from 50.3, slipping into marginal contraction even as the broader manufacturing gauge held at 52.0.
  • Supply-chain disruption and rising cost pressures restrained factory production, while the composite output index eased to 52.5 from 53.2 and services slowed to 52.9 from 53.6.
  • Order books still improved, with manufacturers posting their strongest new-work growth since the start of the year; employment also rose modestly and business confidence hit a six-month high.
  • Input-cost inflation accelerated after easing since April, but firms slowed output-price increases to the weakest pace this year, suggesting they are absorbing more costs and facing tighter margins.

Insights

Why is business confidence reportedly hitting a six-month high when other major surveys warn of record-low optimism across Australia?
As Australian factories face shrinking margins and supply shocks, could turning local trash into industrial treasure save the manufacturing sector?
With businesses absorbing soaring costs to keep demand alive, how long until this margin squeeze triggers a massive economic breaking point?