none
none

MANUFACTURING MAKES GAINS IN JUNE

05-07-2016
by 
in 

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) has edged up 0.8 points to 51.8 points in June, taking the index into more expansionary territory.

The June results have come after some expansionary conditions in May and marks a complete twelve months of continuous expansion.

The continued expansion in the Australian PMI® is linked to the fall of the exchange rate over recent years.

With the Australian dollar now considerably lower than its peak of nearly five years ago, manufacturers have regained some of the competiveness that was given up during that period of high exchange rates.

Five of the seven manufacturing activity sub-indexes in the Australian PMI® remained above 50 points in June.

Production (54.4 points), new orders (54.1 points) and sales (53.7 points) drove the expansion for the month and this bodes well for future months.

The employment sub-index remained (47.9 points) and deliveries slipped into mild contraction (48.9 points) for the month.

The strongest sub-sectors were petroleum & chemical products (62.1 points), non-metallic mineral products (58.3 points) and wood & paper products (57.7 points). The food & beverage sub-sector lost some steam in the month (down 11.6 points to 53.7 points) but kept expanding. Metal products (50.5 points) and printing & recorded media (50.2 points) lifted out of contraction. The textiles & clothing products (48.9 points) and machinery & equipment (44.8 points) sub-sectors both contracted for the month.

Comments from manufacturers in June indicate continuing uncertainty surrounding the impending Federal Election

 “The mild expansion of manufacturing in June capped a year in positive territory for the Australian PMI®." said Innes Willox, Ai Group Chief Executive.

"It was a year in which manufacturers took advantage of the boost to competitiveness from the lower Australian dollar both in the domestic market and in export markets. The metal products sub-sector, which has been heavily impacted by adverse global conditions in recent times, recorded its first expansion since September 2010. The important food and beverages sub-sector continued in positive territory although there are now signs of a slowdown and the machinery and equipment sub sector was weaker – in part due to the low levels of business investment across the economy and the gradual wind-down of auto assembly."

"The clear imperative for the sector is for a lift in investment both within the sector itself and more broadly across the economy,” he concluded,

Related news & editorials

  1. 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
  2. Manufacturing grows despite automotive closures
    01.11.2017
    01.11.2017
    by      In
    Australian manufacturing continued to grow in October, despite the closure of both the country’s remaining automotive assembly plants. The Ai Group’s Australian PMI came in at 51.1 for the month, a figure that is still indicative of growth, albeit at a much-reduced rate than in recent months.
    It... Read More
  3. Celebrations in Copenhagen
    17.10.2017
    17.10.2017
    by      In
    Nilfisk has been successfully listed as an independent company on the Copenhagen Stock Exchange. To mark the event on 12th October, the leadership team, led by CEO Hans Henrik Lund, rang the opening bell to mark the historical milestone in the company’s history.
    “Nilfisk has successfully been a... Read More
  4. Senator the Hon Michaelia Cash
    09.10.2017
    09.10.2017
    by      In
    The Acting Minister for Industry, Innovation and Science, Senator the Hon Michaelia Cash, has launched the second round of the Australian Government’s $8 million Women in STEM and Entrepreneurship (WISE) grants programme, which is open to businesses, not-for-profits, education and research... Read More