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. 02.08.2021
    02.08.2021
    by      In
    Done well, hydraulic servicing can save money and enhance safety.  It is the key to maximising uptime and reliability as mobile hydraulic machinery gets more sophisticated, and depends even more on fully functional and safe hydraulic hoses and fittings. Without them, machinery just stops working –... Read More
  2. piggy bank
    05.07.2021
    05.07.2021
    by      In , In
    Employers should be aware of a number of important changes to payroll and other obligations with the start of the new financial year,” says Innes Willox, Chief Executive of the national employer association Ai Group.
    “The recent Fair Work Commission Annual Wage Review decision increased national... Read More
  3. Yawei laser cutter
    16.06.2021
    16.06.2021
    by      In , In , In
    A commitment to providing outstanding customer service, staying abreast of local trends, and ongoing diversification led to Jmar Engineering in Shepparton, Victoria, celebrating it 25th anniversary recently.
    Jmar, founded by Mark and Janice Hooper, specialises in component manufacturing, repairs... Read More
  4. 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
Products
Suppliers