none

MANUFACTURING ACTIVITY SLIPS BACK IN AUGUST

02-09-2014
by 
in 

Australian manufacturing activity slipped back into negative territory in August after showing positive signs of expansion the previous month.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) decreased by 3.4 points to 47.3, indicating a mild contraction in activity across the sector (readings below 50 indicate a contraction in activity). 

Continuing the recent trend across the eight manufacturing sub-sectors, only the large food, beverages & tobacco (53.8 points) and the smaller wood and paper products (66.3 points) sub-sectors expanded in August. A decline in new orders (down 3.1 points to 48.8) ended three months of promising expansion. 

Australian Industry Group Chief Executive, Innes Willox, said: “The manufacturing sector retreated from the cusp of expansion in August with production, sales, new orders and employment all going backwards. While exports lifted in August, many respondents expressed ongoing concern about the persistent strength of the Australian dollar, which is maintaining the intensity of import competition.” 

Mr Willox said the surge in housing construction has not flowed through to the manufacturing sectors traditionally linked to house building such as metal products and non-metallic mineral products.

“In part this appears to be due to higher levels of import competition and in part because the simultaneous reduction in engineering construction is detracting from demand in these sub-sectors, he said.   

“More generally, manufacturers remain cautious about the outlook and continue to focus on reining in their costs, as they battle these weak trading conditions.” 

Related news & editorials

  1. 19.06.2019
    19.06.2019
    by      In
    Green Distillation Technologies is aiming to bring its first tyre recycling plant at Warren, NSW up to full production following the recent award of an Environmental Protection Licence by the New South Wales EPA.
    The original plant design was for six tyre-processing modules, but to date only one... Read More
  2. 18.06.2019
    18.06.2019
    by      In
    ABB has appointed IPD as the Australian distributor of its electrification products for the 415V switchboard manufacturer channel from July 2019. IPD will also provide ABB low voltage power distribution solutions to major electrical contractors, while all other channels will continue to be serviced... Read More
  3. 18.06.2019
    18.06.2019
    by      In
    Concrete made using industrial waste from coal-fired power stations and steel manufacturing is being used in a world-first road trial in Sydney.
    The City of Sydney is putting the product to the test on a busy inner-city street leading to Sydney Airport, replacing a 30m section of Wyndham St,... Read More
  4. 18.06.2019
    18.06.2019
    by      In
    Inspection of enclosed spaces such as tanks is laborious and expensive, requires extensive planning and following safety regulations, results in significant downtime and poses many potential hazards. Depending on the relevant regulations, most tanks are inspected every five to 10 years.
    Unmanned... Read More