none

Manufacturing activity remains slow

31-08-2010
by 
in 
Manufacturing activity remains slow

Despite a falling Australian dollar and record low interest rates, the manufacturing sector continues to struggle.

The Australian Industry Group's (Ai Group) Performance of Manufacturing Index (PMI) was 42.0 in July, down 7.6 points from June. Readings below 50 indicate a contraction in activity.

It was the 25th consecutive monthly contraction in manufacturing activity.

Five sub-sectors improved in July, while three worsened. Food and beverages was the only sub sector to expand.

Despite the falling Australian dollar, the exports sub-index is well below 30 points again and close to its recent record lows.  

The Australian dollar has fallen around 14 US cents since early May and currently is trading below 90 US cents.

Ai Group chief executive Innes Willox said the manufacturing sector had failed to build momentum after a promising result the previous month.

“Manufacturers are telling us that, while the fall in the Australian dollar and the May interest rate cut have been extremely welcome, they have not yet been enough to turn around a very challenging business environment, he said. “In fact, the drop in the currency has fuelled higher prices for imported inputs without any real corresponding improvement in stronger exports.”

Mr Willox said confidence among manufacturers and their customers remained relatively depressed.

“Concerns are evident about the timing of this year's federal election with related policy uncertainty in key areas, he said. “This is causing many businesses to further postpone their investment decisions.”

Related news & editorials

  1. 10.12.2018
    10.12.2018
    by      In
    Aurecon has named Louise Adams as Managing Director for Australia and New Zealand. She was formerly Regional Director responsible for the company’s South Australian and Victorian practice.
    Announcing the appointment, incoming Global Chief Executive Officer, William Cox, said: “Senior female... Read More
  2. 10.12.2018
    10.12.2018
    by      In
    Safety specialist Axelent is expanding its activities in Australia and New Zealand with the addition of Rob Quinn as Business Development Manager with a brief to focus on customer development and growth in the New South Wales and Queensland markets.
    “I am so pleased to welcome Rob Quinn to the... Read More
  3. 10.12.2018
    10.12.2018
    by      In
    As part of its strategic initiative to grow in its existing markets, MaxiTRANS is set to acquire Australasian Machinery Sales (trading as Trout River Australia), a leading manufacturer and supplier of live bottom trailers.
    The acquisition will be completed in two tranches, with 80% of Trout River... Read More
  4. 06.12.2018
    06.12.2018
    by      In
    With considerable experience in developing products for the garden market, industrial designer Shoji Sinclair was a natural choice to work in collaboration with Pope when the company wanted a new design for its Handy Hose Reel and Cart range, for sale in Australian mass merchant outlets.
    As with... Read More