So Malaga, last week I discussed how the impending CAPEX collapse will translate through into a contraction of our GSP and rising unemployment. We'll today some manufacturing data is out - found here.
Highlights from the report:
Manufacturing activity contracted significantly in April as conditions weakened amid a strong Australian dollar, intense import competition, high energy costs and weak local confidence.
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell 7.7 points to 36.7 on a seasonally adjusted basis. (Readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease.)
This is the lowest level the Australian PMI® has recorded since May 2009, with many of the key sub-indexes also dropping to levels not seen since 2009. The three-month moving average in April fell to 42.2 points from 43.4 points in March.
Now for the charts, as you can see some of them are are lower levels than the GFC, and the speed of contraction for some is faster than during the GFC.
And the pain spread across the sectors:
Production and plant utilisation is tanking hard:
Exports are down bigtime. Remember the further from 50, the more severe things are looking:
Employment down:
If Swan can't pull a ridiculous first home owners grant out of the budget this month, and Stevens doesn't slash the rates. I can't see how property wins over the oncoming economic storm headed for Australian shores.
Also, I'm not here to fear monger, I couldn't make so much bad news up even if I tried! I'm just trying to throw a sanity check into a forum which can sometimes become filled with irrational exuberance.
