Australian Industry index, manufacturing PMI, construction PMI – all into deep contraction

The latest from the Australian Industry Group is dour reading. Link here for more, but in summary:

Key findings

• The Ai Group Australian Industry Index indicated contracting conditions in June, for the fifteen months since the start of the current interest rate rising cycle.
  
• The Australian PMI indicator fell to -25.6, indicating contractionary conditions in manufacturing not seen since the height of the pandemic.
  
• The employment, industrial activity and new orders indicators all weakened into broader contraction.
  
• Price indexes all rose mildly in July, reflective of lower but still persistent inflation.
• The average wages indicator surged by 14.0 points to its highest level, indicating ongoing wage pressures in the tight labour market.
• 
  Capacity utilisation fell marginally to 79.0%, reflecting slowing industrial conditions.