Australian Manufacturing Sector Suffers Steep Decline in September

Australia's manufacturing sector experienced its steepest operational decline in 21 months in September, according to the S&P Global Australia Manufacturing PMI. The index dropped to 49.6, down sharply from 52.0 in August and slightly above the preliminary reading of 49.3.

The decline was driven by a slump in new orders, which contracted for the first time in three months. Rising costs and intensified market competition also contributed to the decline, while muted consumer demand had a negative impact on the sector.

Equity markets reacted negatively to the news, with the benchmark S&P/ASX 200 tumbling 1.4% to 8,669 in early October trade. The Australian dollar also weakened, reaching its lowest level in eleven weeks at around $0.69.