none
none

MANUFACTURING ACTIVITY ON THE RISE

01-09-2015
by 
in 

The Australian manufacturing sector expanded for a second straight month in August, driven by increased production, employment and new orders.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) increased by 1.3 points to 51.7 (readings above 50 indicate expansion).

“A second month of expansion is encouraging for Australian manufacturing, said Ai Group Chief Executive, Innes Willox. “It is also positive for the economy overall which requires a broader base of growth as the mining investment boom continues to unwind.”

Four of the seven activity sub-indexes expanded in August: new orders (up 3.0 points to 52.9) and manufacturing employment (up 3.7 points to 51.3). Both returned to positive territory after two months in contraction.

Production expanded for a second month, if at a slower pace (down 3.0 points to 51.2); and supplier deliveries expanded for a second month (up 2.4 points to 53.0).

Stock levels, however, fell for a seventh consecutive month (up 0.5 points to 48.4) and manufacturing sales returned to contraction (down 5.3 points to 48.6) after a brief expansion in July.

The three-month expansion in exports (down 7.1 points to 44.8) also came to an end.

Three of the eight manufacturing sub-sectors expanded, led by food, beverages & tobacco (down 4.7 points to 54.2) for a 15th month.

The relatively small wood & paper products sub-sector (up 1.8 points to 70) expanded for a sixth month, while textiles, clothing, footwear, furniture & other manufacturing (up 6.0 points to 55.2) returned to expansion after contracting in July.

“Manufacturers are hoping that these positive directions are built upon in coming months and are sufficiently strong to overcome continued headwinds from the reduced orders for materials and equipment from the mining sector and automobile producers,” Mr Willox said.

Related news & editorials

  1. 15.02.2018
    15.02.2018
    by      In
    Australia's deserts will soon hold hundreds of radio dishes, forming part of a global radio telescope designed to listen for signals from the start of the universe: The Square Kilometre Array (SKA). 
    When completed, the ambitious project will be the world's single largest piece of astronomical... Read More
  2. Newcastle solar farm
    15.02.2018
    15.02.2018
    by      In
    Newcastle City Council has signed a contract for the design, construction, operation and maintenance of a 5MW solar photovoltaic project as part of its plan to cut its emissions by 30% by 2020.
    The contract has been awarded to a joint venture between Carnegie Clean Energy subsidiary Energy Made... Read More
  3. 15.02.2018
    15.02.2018
    by      In
    Tomcar Australia, subject of a round of 2017 articles that labeled it as "Australia's last automotive manufacturer", has gone into voluntary administration. 
    Citing hostile investors and increasing costs of business, admistrators confirmed the turnover for Tomcar in the 2016-17 financial year was $... Read More
  4. 15.02.2018
    15.02.2018
    by      In
    An innovation hub to help Australian companies make the shift from traditional manufacturing to more advanced, value-added products has opened in Adelaide.
    The concept was first floated in 2016, and since then development has been ongoing, transforming a former car manufacturing plant into a hub... Read More