none

Manufacturing activity continues to grow

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

The manufacturing sector continued to grow in October, building on modest gains the previous month.

The latest seasonally adjusted Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) was 1.5 points higher than September at 53.2 (readings above 50 indicate an expansion in activity). 

October’s result was largely driven by improvements in new orders (55.7), production (54.5) and deliveries (54.4). 

AiGroup Chief Executive, Innes Willox, said production expanded for the first time in two and a half years and new orders continued to recover.

“While there are certainly encouraging signs, it is too early to call a recovery with a good share of the gains representing a catch-up following a very slow mid-year period, Mr Willox said.

“The fundamentals facing the sector remain very tough with the domestic currency still a major barrier to export growth and an impediment to businesses seeking to win back market share from imports. In addition, manufacturers’ margins remain under pressure as wage and non-wage costs continue to rise ahead of selling prices.”

Of the sub-sectors – food, beverages and tobacco was the strongest performer (in three monthly moving average terms) at 65.6.

Despite the bright spots, manufacturing exports remain very low with the sub-index at 34.1 and employment across the sector continued to contract (48.6).

Metal products (37.7), machinery and equipment (41.9) and textiles, clothing, footwear, furniture and other manufacturing (38.0) all continued to contract for the three months to October.

Related news & editorials

  1. Robot
    24.03.2021
    24.03.2021
    by      In , In , In
    A startup company that aims to develop general-purpose robots for space stations, the surface of the Moon and Mars has attracted the attention of Epson and its subsidiary, Epson X Investment Corporation, who will provide funding.
    GITAI, based in Japan, aims to lessen the risk and burden on... Read More
  2. Photo of Oskar Lapp
    19.03.2021
    19.03.2021
    by      In , In
    The life of a technology pioneer whose cables, connectors and automation innovations are helping facilitate automation and Industry 4.0 transformations now sweeping the globe is being celebrated in Australia this month on the 100th anniversary of the birth of Oskar Lapp.
    LAPP Australia is one of... Read More
  3. AMGC webinar flyer
    16.03.2021
    16.03.2021
    by      In , In
    The Australian Government has announced a $30 million fund to help smaller local manufacturers turn their ideas into commercial outcomes and help create more jobs.
    Minister for Industry, Science and Technology Karen Andrews said the Commercialisation Fund would foster projects that bring industry... Read More
  4. JobMaker promotion graphic
    12.03.2021
    12.03.2021
    by      In , In
    The ATO’s Deputy Commissioner, James O’Halloran, is urging employers to contact their tax or BAS agents, or visit the ATO’s website, if they need advice on applying for the government’s JobMaker Hiring Credit, introduced at the end of last year.
    Under the initiative, which has a cut-off date of... Read More
Products
Suppliers