video-banner
none

ON THE UP: AUSTRALIAN MANUFACTURING GROWS AGAIN

01-10-2019
by 
in 

Positive signs continued for the manufacturing sector in September, with the Ai Group’s Performance of Manufacturing Index rising 1.6 points to 54.7, continuing a sustained run of growth only spoiled by a negative blip at the time of the federal election.

The underlying data provide mostly positive signals, with employment up 6.2 points to 57.6 and new orders up 3.8 points to 57.1. However, production, sales and exports all eased to roughly parity, coming in at 49.8, sales 49.5 and 49.6, respectively.

Encouragingly, of the sectors, it was machinery and equipment that registered the greatest gains, rising 2.5 points to 56.7, largely on the back of increased demand from the mining and defence sectors.

However, the PMI report also points out that some manufacturers reported that a number of large infrastructure projects have begun to progress, after months of delays, increasing their tendering opportunities.

The food and beverage sector continues its steady growth (up 0.2 points to 59.2), and the report highlights ABS data that the sector not only accounted for 27% of manufacturing real value-added output in the year to Q2 2019, it also accounted for 27% of manufacturing employment over the same period.

Announcing the results, Ai Group Chief Executive Innes Willox said: " While sales and production were down in September, the lifts in employment and new orders are encouraging pointers for coming months – particularly as the favourable impacts of income tax cuts, interest rate falls and the lower Australian dollar continue to build."

However, the one dark cloud on the horizon is the continuing disparity between input prices and selling prices. The input price index rose to a year’s high of 71.9, while the selling prices index fell back to 48.9. Some of the manufacturers surveyed reported that increased import competition is restricting their ability to pass on input cost increases.

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