none
none

MANUFACTURING ACTIVITY CONTINUES TO EXPAND

07-06-2016
by 
in 

Australian manufacturing continued to expand in May, led by growth in the production of consumable goods like good and beverages.

The Australian Industry Group's performance of manufacturing index was 51.0 in May, remaining above the 50-level indicating the sector is expanding.

This was a fall of 2.4 over the previous month, a consolidation of recent gains.

Factory activity has now been growing for 11 consecutive months – the longest unbroken run of expansion for nearly 10 years.

"Australian manufacturing is recovering in 2016 in response to the lower dollar, but it

is also rebalancing in response to changes in global production and consumption

trends" Ai Group chief executive Innes Willox said.

The survey indicated that although the Australian dollar had appreciated in recent months, it was still supporting manufacturing growth.

Six of the PMI`s seven subindexes expanded in May, albeit at a slower rate than in April.

Employment was the only subindex to contract, falling 3.4 points to 45.6 in May.

Five of the eight manufacturing subsectors reported growth, led by consumable goods such as food and beverages and wood and paper.

The machinery and equipment subsector also expanded in May after contracting in April.

However, the manufacturing of metal products contracted along with the textiles, clothing and other products category.

The survey showed that manufacturers reported being wary about potential effects the upcoming federal election on their businesses.

Respondents also reported continuing tight margins and aggressive competition, particularly from overseas businesses.

"On balance, the positives are outweighing the negatives at present,"Mr Willox added.

Related news & editorials

  1. 15.02.2018
    15.02.2018
    by      In
    Australia's deserts will soon hold hundreds of radio dishes, forming part of a global radio telescope designed to listen for signals from the start of the universe: The Square Kilometre Array (SKA). 
    When completed, the ambitious project will be the world's single largest piece of astronomical... Read More
  2. Newcastle solar farm
    15.02.2018
    15.02.2018
    by      In
    Newcastle City Council has signed a contract for the design, construction, operation and maintenance of a 5MW solar photovoltaic project as part of its plan to cut its emissions by 30% by 2020.
    The contract has been awarded to a joint venture between Carnegie Clean Energy subsidiary Energy Made... Read More
  3. 15.02.2018
    15.02.2018
    by      In
    Tomcar Australia, subject of a round of 2017 articles that labeled it as "Australia's last automotive manufacturer", has gone into voluntary administration. 
    Citing hostile investors and increasing costs of business, admistrators confirmed the turnover for Tomcar in the 2016-17 financial year was $... Read More
  4. 15.02.2018
    15.02.2018
    by      In
    An innovation hub to help Australian companies make the shift from traditional manufacturing to more advanced, value-added products has opened in Adelaide.
    The concept was first floated in 2016, and since then development has been ongoing, transforming a former car manufacturing plant into a hub... Read More