Australia's September PMI loses more groundCANBERRA...

Australia's September PMI loses more ground

CANBERRA (MarketWatch) -- Australia's manufacturers endured another tough month in September with the sector contracting further and little sign of optimism ahead, according to a performance gauge published Monday.

The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index fell 1.0 point in September to 42.3, from its August level well below the 50 point mark that separates expansion from contraction.

Ten out of the 12 manufacturing sub-sectors recorded declines in activity in September, while the Australian PMI is suggesting 11 consecutive months of job losses, according to an Ai Group statement. The sub sectors experiencing the deepest decline in activity in September were food and beverages; wood products and furniture; transport equipment; and miscellaneous manufactures.

Heather Ridout, Chief Executive of the Australian Industry Group lobby, said caution continues to be the order of the day with most respondents uncertain about the outlook and citing little visibility in relation to business conditions beyond the short term.

"The usual suspects of weak domestic demand, the strong Australian dollar, increased overseas competition and uncertainty surrounding proposed carbon pricing, continue to weigh on the sector," she said in a statement.

The Federal Government has two meetings this week in the Tax Forum and Jobs Forum.

The further decline in the manufacturing sector recorded by the Australian PMI is further evidence that the Tax Forum's focus on the pressures of the two speed economy is appropriate, she said.

http://www.marketwatch.com/story/australias-september-pmi-loses-more-ground-2011-10-02