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Economic Update – Macquarie Wealth Management
2 July 2010
China's official purchasing manager's index (PMI) eased in June to 52.1 from 53.9 in May, marking the second consecutive month of decline for the index. The index indicates whether China's manufacturing sector expanded or contracted during June. A reading above 50 indicates expansion while a reading below 50 indicates contraction. Economists surveyed by Reuters had forecast a slightly firmer figure of 53.1, nevertheless comfort will be taken with the index holding above 50, signalling China's manufacturing sector expanded in June.
Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index (PMI) for June fell to 52.9 from 56.3 in May. While continuing to indicate expansion, the index has retraced significantly from April when the diffusion index neared 60. Overall, growth in manufacturing eased, which was largely attributable to slower growth in manufacturing production, new orders, employment and supplier deliveries.
Australian retail sales rose slightly by 0.2% during May, but were lower than the 0.6% increase recorded in April, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS). The relatively modest rise was broadly in line with the consensus forecast for a 0.3% increase. The largest increases by component were recorded by clothing and footwear (1.7%) and department stores (1.0%). Sales declined in household goods retailing (-1.4%). By state, New South Wales (0.9%) and Victoria (0.2%) recorded increases in sales in May, while all other states and territories recorded a decrease in sales.
Retail Sales, percentage change from preceding month
Source: IRESS and MPW Research
