none

Manufacturing activity continues to fall

31-08-2010
by 
in 
Manufacturing activity continues to fall

Manufacturing activity fell for the third consecutive month in January, according to the latest industry data.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) was down slightly by 0.9 points to 46.7 in January.

Readings below 50 indicate a contraction in activity.

The seasonally adjusted Australian PMI remained in negative territory across all the major activity sub-indexes. 

However, there was some improvement in new orders and employment with those sub-indexes contracting at a slower rate compared with December – 48.8 and 48.3 respectively.

Four sub-sectors recorded growth in January – food, beverages and tobacco (54.0), wood and paper products (61.9), petroleum, coal, chemical and rubber products (52.7) and non-metallic mineral products (57.6).

Production (45.2), stocks (40.1) and exports (34.1) were the weakest activity sub-indexes in January.

Australian Industry Group Chief Executive, Innes Willox said: “2014 looks to be another challenging year for many Australian manufacturers, although a handful of areas are showing some positive signs of growth.”

Non-metallic minerals, including key building materials such as glass, bricks and cement, has improved in response to the beginnings of a lift in residential construction. Some encouraging signs are also evident in food and beverages manufacturing and in petroleum and chemicals manufacturing, possibly due to the lower Australian dollar over recent months.

“But our other large manufacturing sectors continue to struggle, despite the lower dollar and low interest rates, said Mr Willox.

“Muted local demand and a difficult export market means they are in no position to assume the lead in generating alternative sources of growth as the mining investment boom fades through 2014.

“We urgently need to invest in a more balanced and diversified growth path to smooth this transition and manufacturing will continue to play a key role in any such strategy.

Related news & editorials

  1. 15.09.2020
    15.09.2020
    by      In , In , In
    It may be seen as a bit of an irony to suggest that there has never been a much better time for manufacturing business to bask in the glory of public attention, especially during a time of COVID-19 pandemic.
    But according to Chief Executive Innes Willox from peak employer AiGroup, it is a time for... Read More
  2. 15.07.2020
    15.07.2020
    by      In , In
    St.George Chief Economist Besa Deda offers a renewed outlook for the Australian manufacturing sector as the fallout from the coronavirus pandemic continues.
    When COVID-19 hit the world in early 2020, economies were shattered as lockdowns forced social distancing and mass business closures. The... Read More
  3. 15.07.2020
    15.07.2020
    by      In , In , In
    Digitalisation and the acceleration of globalisation over the last two decades has offered Australian customers convenience and greater choice. Many local brands have taken a hit where international goods have succeeded due to their price competitiveness.
    While the COVID-19 pandemic has caused... Read More
  4. 09.03.2020
    09.03.2020
    by      In
    South Australia boasts a highly skilled and educated workforce, a renewed focus on entrepreneurship and innovation, and multi-billion-dollar defence industry contracts.
    The state’s world-class research institutions and universities, an investment in skills and the development of entrepreneurial... Read More