none

MANUFACTURING’S WINTER OF UNCERTAINTY ENDS ON BRIGHT NOTE

02-09-2019
by 
in 

Australian manufacturing continued to rally during August, with the Ai Group’s Performance of Manufacturing Index rising again by 1.8 points to reach 53.1. And the underlying data suggest that the recovery should not be short lived.

According to Ai Group Chief Executive Innes Willox: "Stronger production, sales, and employment combined in a small though encouraging lift in the Australian PMI for August. While it is only expanding at a modest pace, the further growth in manufacturing in August is heartening and, together with a rise in new orders, will help allay fears of a further slowdown in business conditions.”

The positive data included production (up 4.9 points to 53.2) and sales (up 11.6 points to 54.3) both returning to positive numbers. And with new orders rising to 53.3 and exports increasing to 55.7, the demand side of the equation is looking rather more positive than it did in July.

In terms of manufacturing sectors, the large food and beverage category still leads the way, with a slightly reduced figure of 55.8. However, the most encouraging performance came from the machinery and equipment sector, which returned to positive territory at 52.5 after several months of decline.

Input prices do continue to increase, albeit at a slightly slower rate with an index of 66.2. But this was offset by an increase in selling prices, with that index rising back into positive figures at 52.7.

Both these figures can, to some degree, be explained by the declining value of the Australian dollar. Many of the manufacturers surveyed reported increased costs of input materials due to the decline in the dollar, while others have seen increased demand from overseas for their end products.

One other change attributed to a delayed response came in the average wages index, which rose by 3.4 points to 60.3 in August. Ai Group commentators attribute the rise to this year's 3.0% minimum wage increase making its way through the system of industrial awards and agreements.

Related news & editorials

  1. Matt and Ross
    09.06.2021
    09.06.2021
    by      In , In
    Simple, high-quality coffee is revered in Italy. So when an Australian of Italian heritage, who has been involved in the coffee business most of his life and visits Italy regularly, tells you that Australian roasted coffee is the world’s best, you sit up and take notice. And when he goes on to tell... Read More
  2. Files
    17.05.2021
    17.05.2021
    by      In , In
    Today’s businesses have no room for complacency; they must be fastidious right across their operations. The systematic drive for thoroughness is captured in one underappreciated word: compliance.
    At first brush, compliance can seem like a big and vague concept, detached from immediate business... Read More
  3. coins
    12.05.2021
    12.05.2021
    by      In , In
    "From an industry perspective, the Government's second budget in a year locks in the recovery from recession and shifts gears from emergency measures to investing in the economy for the longer term," says Innes Willox, Chief Executive of the national employer association Ai Group.
    He described it... Read More
  4. Lab
    05.05.2021
    05.05.2021
    by      In , In
    Newly launched space startup Quasar Satellite Technologies is set to revolutionise space communications, using radio telescope technology developed by the CSIRO. 
    With more than 57,000 satellites set to be launched by the end of the decade, Quasar is creating a world-leading ground station service... Read More
Products
Suppliers