none
none

MANUFACTURING ACTIVITY CONTINUES TO EXPAND

07-06-2016
by 
in 

Australian manufacturing continued to expand in May, led by growth in the production of consumable goods like good and beverages.

The Australian Industry Group's performance of manufacturing index was 51.0 in May, remaining above the 50-level indicating the sector is expanding.

This was a fall of 2.4 over the previous month, a consolidation of recent gains.

Factory activity has now been growing for 11 consecutive months – the longest unbroken run of expansion for nearly 10 years.

"Australian manufacturing is recovering in 2016 in response to the lower dollar, but it

is also rebalancing in response to changes in global production and consumption

trends" Ai Group chief executive Innes Willox said.

The survey indicated that although the Australian dollar had appreciated in recent months, it was still supporting manufacturing growth.

Six of the PMI`s seven subindexes expanded in May, albeit at a slower rate than in April.

Employment was the only subindex to contract, falling 3.4 points to 45.6 in May.

Five of the eight manufacturing subsectors reported growth, led by consumable goods such as food and beverages and wood and paper.

The machinery and equipment subsector also expanded in May after contracting in April.

However, the manufacturing of metal products contracted along with the textiles, clothing and other products category.

The survey showed that manufacturers reported being wary about potential effects the upcoming federal election on their businesses.

Respondents also reported continuing tight margins and aggressive competition, particularly from overseas businesses.

"On balance, the positives are outweighing the negatives at present,"Mr Willox added.

Related news & editorials

  1. 21.11.2017
    21.11.2017
    by      In
    Darcy Ewing of Kurrupt Kustoms in Albury NSW was running compressed air from a 6-year-old reciprocating piston-style compressor when (in his own words) it virtually “S*** itself!”.
    This left his high-end auto body and customisation shop in real trouble with a total shutdown of all essential... Read More
  2. 21.11.2017
    21.11.2017
    by      In
    If the recent upheavals in Australian manufacturing illustrate one truth, it is the absolute necessity for forward planning, and more to the point, the importance of planning for growth – regardless of a company’s existing size.
    While the ambition to grow a manufacturing operation is one thing,... Read More
  3. 21.11.2017
    21.11.2017
    by      In
    Blockchain technology was invented to make the world’s first crypto-currency, Bitcoin, possible. Traditional currencies rely on intermediaries like governments, banks and clearing houses to guarantee their value and process transactions. Bitcoin uses digital technologies to cut out these middlemen... Read More
  4. 21.11.2017
    21.11.2017
    by      In
    Australian Tank Engineering (ATE Tankers) has been engineering and manufacturing tankers in Australia for nearly two decades. But whereas most vehicle manufacturers have seen sales decline in recent years, ATE has elevated itself through the trend with a transformative mindset that has enabled the... Read More