video-banner
none

AUSTRALIAN MANUFACTURING CONTINUES TO GROW FOR 20TH MONTH

01-06-2018
by 
in 

Australian manufacturing industry continues to perform, with the Ai Group’s Performance of Manufacturing Index easing slightly to 57.5 in May, marking the 20th consecutive month of growth. But while the current “bull run” is beginning to draw comparisons with the sustained growth of the early years of the 21st century, it still has a way to go to match the 50 consecutive months of growth between July 2001 and July 2005.

Looking behind the headline figures, sales levels were stable in May (50.4), while finished stocks contracted (47.0), as manufacturers drew down on inventories, with some reporting shortages or delays in raw material supplies. Encouragingly, new orders remained above 60 points – a good sign of ongoing demand and continuing growth for the sector.

The machinery and equipment subsector remained strong at 59.9, and has now recorded 19 consecutive months of stable or expanding activity, following five years of contraction. Equipment for mining, agriculture and food processing and vehicles such as trucks, trains, buses and boats all appear to be in demand, although some manufacturers are seeing increased competition from cheaper imports.

However, business conditions are still far from perfect. The input prices subindex rose to 70.0 in May on the back of increasing energy costs, and wages remained elevated (58.4). The selling prices subindex dropped 2.4 points to 55.1, but exports recovered from a poor showing in April, returning to positive growth at 52.5.

In announcing the figures, Ai Group Chief Executive Innes Willox highlighted the increase in manufacturing employment, saying: "The recovery of manufacturing employment has been a feature of this period of expansion. As is the case in other parts of the economy, this employment growth has been facilitated by moderate wage outcomes.”

Related news & editorials

  1. 14.02.2020
    14.02.2020
    by      In
    Universal Robots has teamed up with global vendor finance company DLL to launch a cobot leasing programme that will enable any manufacturer to reap the benefits of automation without worrying about cashflow or seasonal fluctuations.
    The global programme is expected to appeal to the market in... Read More
  2. 03.02.2020
    03.02.2020
    by      In
    Australian manufacturing suffered its usual seasonal decline in January, with the Ai Group’s Performance of Manufacturing index slipping to 45.4 – the lowest monthly figure since 2015. And while the severity of the decline is a concern, it does come in the face of global factors including the... Read More
  3. 13.01.2020
    13.01.2020
    by      In
    The final release of the AiGroup’s Performance of Manufacturing Index for 2019 showed that the local industry is faring better than most around the world in the face of numerous local and global impediments from drought and bushfires to geopolitical conflicts and tariff wars.
    The Australian PMI... Read More
  4. 02.12.2019
    02.12.2019
    by      In
    The negative indicators from previous months took their toll on Australian manufacturing in November, with the Ai Group’s Performance of Manufacturing Index (PMI) slipping into negative territory. The Australian PMI fell by 3.5 points to 48.1, which is the lowest figure since August 2016.... Read More