Manufacturing is getting murdered

Nice. The raging recession in Australian manufacturing is worsening. The PMI dropped to a new cycle low, having been in effective recession for over a year.

The internals of the survey are very nasty. 10 out of 12 sectors are shrinking:

Capacity utilisation is collapsing, suggesting more job losses are ahead:

The rate of new orders is shrinking, with the second derivative of the pace of the decline slowing a slim hope:

And, finally, margins are getting killed between rising costs and falling prices:

I look at a lot of PMIs around the world. This is by far the worst.

PMI September 2011 Report FINAL