none
none

MANUFACTURING GROWS FOR TENTH CONSECUTIVE MONTH

03-08-2017
by 
in 
Manufacturing on the rise

Australian manufacturing has continued its upward path for the tenth consecutive month, with the Ai Group’s Performance of Manufacturing Index coming in at 56.0 for July.

The manufacturers surveyed for the report cited increased demand from construction, mining and agriculture for locally manufactured construction materials, machinery and equipment. Large government-funded projects in NSW and Victoria also increased demand, as did the nation’s ever-growing schedule of solar and wind power projects.

On the down side, manufacturers across many sectors report significant challenges from rapidly rising energy costs, higher raw material costs, the rising Australian dollar, and the impending departure of automotive assembly.

Overall, the data reveal that manufacturers’ margins are still under pressure. The input prices subindex increased by 4.4 points to 69.3 points, while the wages subindex decreased by 4.7 points to a less expansionary 55.7 points July.

The manufacturing selling price sub-index increased by 2.9 points to a neutral 50.0 points, with most subsectors showing negative or minimal growth in selling prices in July.

Ai Group Chief Executive, Innes Willox, highlighted that “production, sales, exports and employment all grew during the month, in part thanks to the strength of other key sectors including construction and agriculture, and the recovery of spending in the mining sector.”

“These growth opportunities more than offset the further decline of automotive assembly. They are also, at least for the time being, helping to mitigate the growing threats from unrelenting energy price rises and a higher dollar," he added.

Related news & editorials

  1. 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
  2. Manufacturing data up
    01.12.2017
    01.12.2017
    by      In
    The manufacturing sector bounced back into high growth territory in November, reversing a slowing trend that had become evident over the previous two months. The AI Group’s Australian PMI rose well away from the “break-even” 50 mark, rising to 57.3 for the month, reversing a trend that had seen it... Read More
  3. 29.11.2017
    29.11.2017
    by      In
    Calix has picked up an Australian Advanced Manufacturing Growth Fund award to produce advanced materials for lithium ion batteries using its Calix flash calciner (CFC) technology.
    Described as “reinventing the kiln”, CFC technology can be used to make a wide variety of mixed metal oxide materials... Read More
  4. 14.11.2017
    14.11.2017
    by      In
    Australia should be doing more to reach out into the world and build a global export brand. 
    That’s the conclusion of a major review by the Committee for Economic Development of Australia (CEDA) report, and its conclusions are supported by export data, and comments from Christopher Pyne. 
    The CEDA... Read More