none

Manufacturing activity still in decline

03-07-2014
by 
in 

The Australian manufacturing industry continues to struggle, largely due to the strengthened Australian dollar and increased competition from imported goods.

The latest AiGroup performance index (Australian PMI) shows manufacturing activity has now been in decline for eight consecutive months.

The recent rise of the Australian dollar, currently sitting above US94c, was causing more pain, with softening sales of locally made products.

The performance of manufacturing index dropped 0.3 points in June to 48.9 points — below the 50 level that separates contraction from expansion.

Ai Group chief executive Innes Willox said there were some positive signs in June with a lift in food and beverage exports. Removing the carbon tax would help manufacturing, he said.

“Respondents from import-competing businesses, in particular, noted the adverse impacts of the renewed strength of the Australian dollar,” Mr Willox said.

“It is clear that there are ongoing pressures facing manufacturing and there is a continuing need to improve cost-competitiveness and productivity across the sector.

“In this regard, removing the carbon tax will help manufacturers, especially as competitive pressures forced so many to absorb the cost of the tax.”

The only sub-sectors to expand in June were food and beverages, and wood and paper products.

The metal, machinery and equipment, and petroleum, coal, chemicals and rubber sub-sectors all contracted.

Related news & editorials

  1. 10.08.2020
    10.08.2020
    by      In
    Love them or hate them, face masks have become a tenet of the “new normal” reality of life with COVID-19.
    As the debate over whether to wear them or not continues to rage around the world, Industry Update has put together the most accurate information possible surrounding the use and efficacy of... Read More
  2. 10.08.2020
    10.08.2020
    by      In
    Australia’s national science agency has launched the nation’s first accredited surgical face mask testing facility in Melbourne.
    The new facility, accredited by the National Association of Testing Authorities (NATA), is designed to help frontline health workers in the fight against COVID-19. It has... Read More
  3. 10.08.2020
    10.08.2020
    by      In
    In the wake of its Port Pirie success, Bentley’s Cabin Parks will soon open its new fully self-contained accommodation park at Port Augusta.
    Part of the Bentley Group, the cabin park division was established in 1995 when founder and managing director Hayden Bentley, inspired by his travels around... Read More
  4. 05.08.2020
    05.08.2020
    by      In
    In terms of the economy, COVID-19 has had a catastrophic effect on the sales industry.
    The true emotional cost on those responsible for making those sales, however, is harder to quantify.
    Ironically, says Hazel Stewart, managing director of Australian corporate sales training company Innovate Learn... Read More