The Australian Industry Group (Ai Group) Australian PMI dropped by 1.5 points to 52.5 in July, indicating a weaker rate of expansion compared to the previous month.
“The supply and labour constraints afflicting the Australian economy are weighing heavily on the manufacturing sector. Production and employment both fell in July, as manufacturers struggle with chronic labour shortages and supply chain interruptions,” Ai Group chief executive Innes Willox said.
“New orders rose this month, but our manufacturers simply can’t meet this demand without more workers. Manufacturing has a key role to play in reducing the inflationary pressures facing Australia. To unlock the industry’s full potential, we need to promptly address skilled labour shortages.”
Labour challenges, supply chain disruptions and high energy prices remain the major structural constraints on manufacturing.

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