Australia’s manufacturing sector shows major improvement
By SAM RO Business Insider
Australia’s June manufacturing PMI numbers are out.
The headline number jumped to 49.6 from 43.8 in May.
This is good news.
“June 2013 saw the highest level for the Australian PMI since June 2011, which was the last time the Index moved above 50 points,” noted the Australia Industry Group.
The Australian economy has been under pressure as its key export markets — primarily China — have been slowing down.
“Exports continue to struggle, with the exports sub-index only partially recovering from its recent record lows,” said AiG. “At just 30.3 points, the exports sub-index continues to signal extremely tough exporting conditions, despite the fall in the Australian dollar.”
“Make no mistake – the Australian tide is going to be heading way out as China is about to have what our economist Wei Yao described as its ‘Minsky moment’, or in layman’s terms, its day of reckoning!” warned Societe Generale strategist Albert Edwards.
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