Australian Manufacturing Sector Faces Challenges

The Australian manufacturing sector experienced a notable downturn in December, as revealed by the latest Purchasing Manager's Index (PMI) data. The index fell to 47.8 from November's 49.4, indicating a contraction in factory activity.

Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, commented on the situation, stating, "The December PMI data highlights a continued softening in the goods producing sector. The end of the year saw a worsening of the downturn, driven by persistent domestic and external pressures."

This decline underscores the challenges faced by the Australian manufacturing industry, as it navigates through a complex landscape of economic pressures.