none
none

MANUFACTURING RETURNS TO FORM

01-11-2016
by 
in 

The Australian manufacturing industry has returned to growth, following predictions and trends that indicated August's slump was a temporary anomaly. 

The Australian Industry Group's Australian Performance of Manufacturing Index (Australian PMI) increased by 1.1 points in October, reaching 50.9 and indicating that after August's contraction, and September's stability, October was a month of gradual expansion. 

Ai Group Chief Executive, Innes Willox, said that "the lift of the Australian PMI® into growth territory, while only by the narrowest of margins, is nevertheless positive news after the inventory-related adjustment of a couple of months ago. Stronger exports, domestic sales and new orders in October are encouraging although growth remains relatively narrowly based, with contractions in the important metal products and non-metallic minerals sub-sectors broadly offsetting expansions in the machinery & equipment and petroleum & chemicals sub-sectors while the largest manufacturing sub-sector – food & beverages – trod water in October." 

This expansion of exports is a positive indicator that the power of Australian branding is still strong, and will likely play a large role in the manufacturing industry over the next quarter. 

Some comments from manufacturers suggest that expansion could have been even stronger, had the weather not been more favourable. Adverse conditions, and power supply issues in South Australia, put a dampener on an otherwise positive month. 

Construction, however, remains strong, with NSW leading the other states in construction activity. 

As for the individual trends: three of the five sub-indexes of manufacturing expanded in October (sales, new orders, exports), while two (employment and and inventories) decreased slightly, though none fell below a PMI of 45. 

Four of the eight sub-sectors expanded, also: Printing and recorded media, petroleum & chemical products, machinery & equipment, and food & beverages all continued expansion, continuing their run of strong performances.

With strong performances overall, October is a reassuring month for those who had concerns sparked by August's sudden decline, which interrupted 12 months of continuous growth in the industry as a whole.  

Related news & editorials

  1. 21.09.2017
    21.09.2017
    by      In
    A NSW defence engineering company has partnered with an Israeli defence systems leader to deliver Australian production and assembly of Spike missiles.
    The Spike is an Israeli-designed missile, built to target and track armor and infantry targets. 
    Varley Australia will create a state-of-the-art... Read More
  2. 21.09.2017
    21.09.2017
    by      In
    It would be an understatement to say that Australia's NBN rollout has been fraught with delays and dissapointments. 
    Politics, changes in management, and technological hurdles have lead to a slower implementation than was initially predicted. Many households on the NBN are not recieving speeds that... Read More
  3. A red holden ute
    21.09.2017
    21.09.2017
    by      In
    With the closure of big automotive manufacturing plants, thousands of Australian workers have been displaced. Hundreds of them are yet to find new work. 
    Approximately 950 Holden employees remain at the factory in Adelaide's north. Yet, with just over a month until its final close, many are yet to... Read More
  4. Paddy Neumann works on the Neumann ion drive.
    21.09.2017
    21.09.2017
    by      In
    In a warehouse hidden away in the inner suburbs of Adelaide, there's a great deal of work being done, and it's all about space. 
    “The short answer is, it is rocket science,” says Dr Paddy Neumann, the founder and driving force behind the Neumann Space initiative. 
    Out of this location comes all... Read More