The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) recovered by 5.8 points to 41.6 in May, after experiencing the largest single-month drop in the index's history in April (readings below 50 points indicate contraction in activity, with lower results indicating a faster rate of contraction).
The manufacturing industry remained in deep contraction in May, as COVID-19 restrictions affected demand across the board. The decline slowed across all activity indices in May, except for the exports index which recorded its lowest ever monthly result as many overseas markets essentially shut down.
Many manufacturers reported that orders from their regular customers have been delayed or cancelled altogether because of the pandemic.
