none

Manufacturing activity on the rise

31-08-2010
by 
in 
Manufacturing activity on the rise

Australia’s manufacturing sector is showing signs of improvement, due largely to increased production and a boost in new orders.

The manufacturing sector nudged growth in June, according to the latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI).

The Index recorded 49.6 in June – up 5.8 points from the previous month.

Readings below 50 indicate contraction.

Production expanded to 50.2 from the previous month, while the new orders index recorded 49.9 and supplier deliveries 49.6. 

But despite sharp falls in the Australian dollar, manufacturing exports continue to struggle. The export Index for June was 30.3.

Ai Group Chief Executive, Innes Willox, said: “The unexpected lift in the Australian PMI is a welcome, though tentative, sign that manufacturers’ efforts to fight back against the severe pressures facing the industry are beginning to pay off.”

Mr Willox said the Reserve Bank’s reductions in the cash rate appear to be supporting a weak pick-up in local demand. A drop in foreign exchange rates may also be assisting local domestic producers.

“Export conditions, however, remain extremely challenging,” Mr Willox said.

The improvement comes after two years of continuous decline and after two months of especially weak Australian PMI readings in April and May. 

Mr Willox urged caution with the latest figures, warning that sales are still lagging behind production.

Despite the weaker Australian dollar and a relatively low level of official interest rates, Australia remains a high-cost location for production.

“We need to generate a significant lift in productivity to restore competitiveness, he said. “This is critical if the manufacturing sector is to contribute to the economic resilience and diversification required as the mining investment boom fades.”

Related news & editorials

  1. 15.11.2018
    15.11.2018
    by      In
    It’s less than a year since Lapp Australia started trading, but the company has swiftly established itself in the local market, with significant penetration in sectors such as food and beverage, manufacturing, solar, sound and stage production, electrical contracting, machine building and... Read More
  2. 12.11.2018
    12.11.2018
    by      In
    Energy Vault has developed a novel solution to storage for renewable energy plants that involves neither batteries nor water.
    The Energy Vault system is based on the fundamental physics of potential and kinetic energy, and uses a proprietary, cloud-based software platform to operate a newly... Read More
  3. 07.11.2018
    07.11.2018
    by      In
    With a combination of its industry-leading fans and energy-efficient lighting products, Big Ass is improving working conditions in Australia and around the globe.
    Blazing Queensland temperatures and humidity were creating uncomfortable working conditions at XL Service Bodies, an industry-leading... Read More
  4. 07.11.2018
    07.11.2018
    by      In
    ABB has thrown its weight behind the OPC Foundation in its bid to define the worldwide industrial interoperability standard. The new Open Platform Communication Unified Architecture (OPC UA) standard has the potential to enable industrial players to unlock the full potential of Industry 4.0.
    OPC UA... Read More