none
none

Manufacturing activity continues to grow

31-08-2010
by 
in 
Manufacturing activity continues to grow

The manufacturing sector continued to grow in October, building on modest gains the previous month.

The latest seasonally adjusted Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) was 1.5 points higher than September at 53.2 (readings above 50 indicate an expansion in activity). 

October’s result was largely driven by improvements in new orders (55.7), production (54.5) and deliveries (54.4). 

AiGroup Chief Executive, Innes Willox, said production expanded for the first time in two and a half years and new orders continued to recover.

“While there are certainly encouraging signs, it is too early to call a recovery with a good share of the gains representing a catch-up following a very slow mid-year period, Mr Willox said.

“The fundamentals facing the sector remain very tough with the domestic currency still a major barrier to export growth and an impediment to businesses seeking to win back market share from imports. In addition, manufacturers’ margins remain under pressure as wage and non-wage costs continue to rise ahead of selling prices.”

Of the sub-sectors – food, beverages and tobacco was the strongest performer (in three monthly moving average terms) at 65.6.

Despite the bright spots, manufacturing exports remain very low with the sub-index at 34.1 and employment across the sector continued to contract (48.6).

Metal products (37.7), machinery and equipment (41.9) and textiles, clothing, footwear, furniture and other manufacturing (38.0) all continued to contract for the three months to October.

Related news & editorials

  1. Aussie dollar weaker
    09.01.2018
    09.01.2018
    by      In
    Business confidence in the manufacturing sector is at its highest level since June 2003, according the latest Business Expectations Survey from illion (formerly Dun & Bradstreet).
    “Manufacturing firms that were able to withstand the global financial crisis and the Australian dollar above parity... Read More
  2. 08.01.2018
    08.01.2018
    by      In
    It was supposed to have been the year when Australian manufacturing industry would dig in and somehow or other recover from the setbacks of the closures at Toyota and Holden. But 2017 turned out to be a year of expansion, according to the final figures from the Ai Group’s Australian Performance of... Read More
  3. Export growth
    15.12.2017
    15.12.2017
    by      In
    This week’s Australian Chamber-Westpac Survey of Industrial Trends for the December Quarter contained further good news for manufacturing industry, with continuing solid output, backlogs and new orders. And employment numbers and overtime are both expanding.
    Westpac Senior Economist Andrew Hanlan... Read More
  4. Building infrastructure certification
    13.12.2017
    13.12.2017
    by      In
    Test and certification specialist Bureau Veritas has expanded its footprint in Australia with the acquisition of a 65% equity stake in McKenzie Group Consulting.
    McKenzie Group is based in Sydney with additional operations in Brisbane, Melbourne and Gold Coast. The company offers a range of... Read More