none

FOOD AND BEVERAGE SECTOR SPURS MANUFACTURING EXPANSION

01-05-2019
by 
in 

The growth rate of Australian manufacturing accelerated during April 2019, with the Ai Group’s Performance of Manufacturing Index rising by 3.8 points to 54.8. The figure marks the 32nd consecutive month for the Australian PMI at 50 and above.

Once again, the star performer was the food and beverage sector (the largest component of Australian manufacturing), which reached an impressive 61.8 in April. Interestingly the manufacturers in this sector reported higher than usual seasonal demand (Q2 is typically slower) driven by a lower Australian dollar supporting export orders and higher input prices for local foods.

Despite the political uncertainty brought about by the federal election campaign, key activity sectors that had shown weakness in March returned to positive territory. These included the all-important sales subindex (up 7.5 points to 53.9) and supplier deliveries (up 11.5 points to 57.2). Encouragingly, new orders also rose from a flat 50 to 55.6.

Only finished stocks remained in contraction, despite rising 1.8 points to 47.9, and employment growth slowed but remained positive at 51.5.

Certain sectors do still appear to be suffering from the lingering effects of the drought and the downturn in residential construction. Both machinery and equipment (44.6) and metal products (44.7) fell further into contraction during April.

Commenting on the release of the April figures, Ai Group Chief Executive Innes Willox alluded to the forthcoming federal election, saying: “Elevated energy prices remain the largest concern for many manufacturers, with stable and effective policy in this area a key area of interest.”

Related news & editorials

  1. 14.06.2019
    14.06.2019
    by      In
    The University of Western Australia and its partner organisations will receive $67.5 million in overall funding for world-class equipment to advance scientific research in Western Australia and support WA jobs in STEM industries.
    The State Government has committed $10.5 million over the next three... Read More
  2. 11.06.2019
    11.06.2019
    by      In
    New data from the Australian Bureau of Statistics confirm that manufacturing employment is on the rise again. Although the total number of filled jobs in the sector declined from 900,000 in March 2014 to 880,000 in March 2019, the recent trend has been upwards and accelerating, with the total... Read More
  3. 04.06.2019
    04.06.2019
    by      In
    A novel Silicon Valley financial technology product has been launched in Australia following huge success in the USA. PayActiv is a mobile app based “financial wellness” product that gives employees immediate access to earned-but-unpaid wages, helping them to avoid financial stress.
    Working on the... Read More
  4. 03.06.2019
    03.06.2019
    by      In
    The uncertainty factor of the now decided federal election cast a damper on Australian manufacturing during May, with the Ai Group Performance of Manufacturing Index dropping from April’s high of 54.8 to 52.7 points in May, indicating that the rate of growth has slowed.
    Nonetheless, growth it still... Read More