none

Manufacturing activity contracts again

31-08-2010
by 
in 
Manufacturing activity contracts again

Innes Willox … ‘tough going’

Australia's manufacturing sector has contracted for an eighth consecutive month following continuing falls in selling prices and new orders.

The latest Australian Industry Group performance of manufacturing index (PMI), recorded 45.2 in October – a rise of 1.1 over the previous month.

Readings below 50 indicate a contraction in activity, with the distance from 50 showing the strength of the decrease.

The new orders sub-index dropped a further 0.4 points to 43.9 in October while the only sub-sectors to expand in the month were paper, printing & publishing (51.1) and transport equipment (52.5).

Manufacturers cited the high Australian dollar, stronger import competition and rising energy prices as factors inhibiting growth in October. 

Australian Industry Group Chief Executive, Innes Willox, said: "Manufacturers continue to find the going very tough in the face of the strong dollar, weaker demand in export markets and flat conditions across the non-mining sectors of the domestic economy –particularly in commercial and residential construction which has strong linkages with domestic manufacturing.

"For quite some time, the sector has faced a squeeze on margins with prices for non-labour inputs and wages rising steadily while selling prices have been weak. 

“In October the squeeze intensified with the selling price sub-index recording its lowest level since being introduced into the Australian PMI over a decade ago.  Non-labour input prices and wages paid by manufacturers continued to rise in October although the pace of wages growth eased somewhat in the month.”

Related news & editorials

  1. 27.06.2019
    27.06.2019
    by      In
    Blasting and coating specialist BlastOne has established a 3-year sponsorship of the Australian Corrosion Association’s Applicator Technical Group.
    “This deal is ground breaking, and with the support of BlastOne it establishes a framework for the ATG to deliver a potential value of $355,000... Read More
  2. 27.06.2019
    27.06.2019
    by      In
    Mouser Electronics is expanding its global headquarters and distribution centre to meet its business needs well into the next decade. Construction is under way to build a new 5000m2 office building and add more than 12,500m2 to its distribution centre on its 78ha campus south of Dallas-Fort Worth,... Read More
  3. 26.06.2019
    26.06.2019
    by      In
    Free registration is now open for the inaugural Energy Efficiency Expo, to be held in Melbourne on 23rd and 24th October 2019.
    The new trade exhibition and conference has been launched by Reed Exhibitions Australia in partnership with the Energy Efficiency Council to help organisations solve their... Read More
  4. 25.06.2019
    25.06.2019
    by      In
    Mouser Electronics has been honoured with an award from one of its manufacturer partners, the Taiwan-based Yageo Corporation, for Largest Customer Growth. The award was recently presented to Mouser representatives in recognition of its best-in-class efforts that contributed to Yageo’s growth and... Read More