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. EMISSIONS image coal
    22.04.2021
    22.04.2021
    by      In
    The Morrison Government is set to invest a further $539.2 million in new clean hydrogen, carbon capture, use and storage (CCS/CCUS) projects. This will support Australian industry, create jobs, help cut emissions and drive investment.
    The added investment for new clean hydrogen and carbon capture... Read More
  2. australian made week
    22.04.2021
    22.04.2021
    by      In
    The “Australian Made, Australian Grown” logo has established itself as something of an industry legend, with the iconic green and gold kangaroo logo having now promoted Australian products for more than 35 years. Ever since the roo’s launch in 1986, nothing else has proudly signalled Aussie... Read More
  3. Jobmaker Hire
    22.04.2021
    22.04.2021
    by      In
    The economic recovery is going better than most dared to hope, with over 300,000 new jobs created since October 2020.
    But while the outlook is positive, we’re not out of the woods yet.
    One issue to watch is the impact of the conclusion of major stimulus and industry support measures such as... Read More
  4. pedestrian
    20.04.2021
    20.04.2021
    by      In
    The workforce is not subject to casualisation, nor is it experiencing a growth in independent contractors, says Innes Willox, Chief Executive of the national employer association Ai Group.
    Despite the view of some commentators, “the proportion of the total workforce engaged as casual employees has... Read More
Products
Suppliers