none

MANUFACTURING BOUNCES BACK WITH ORDERS AND EXPORTS UP

03-09-2018
by 
in 

Australian manufacturing continued its inexorable march forward during August, with the Ai Group’s Australian PMI rising back into high growth territory at 56.7 – up from July’s 52.0, which had suggested that growth was slowing. The August figure marks the 23rd consecutive month of expansion.

Encouragingly, both exports and new orders were significantly higher, each rising by 8.5 during the month to 58.4 and 59.6, respectively.

Several of the figures are showing the effects of the continuing drought in New South Wales and Queensland, with food and beverage manufacturers reporting higher prices of raw agricultural inputs, and manufacturers of machinery and equipment for the agricultural sector and its supply chain reporting reduced sales.

The overall input prices subindex rose to its highest level since March 2011 on the back of elevated prices for petroleum, coal, chemical and rubber products, metal products and machinery and equipment. And the average wages subindex rose to a record high of 64.7.

Releasing the figures, Ai Group Chief Executive Innes Willox said: "The manufacturing sector has confounded doubters in recent years by lifting employment and production but significant headwinds from energy costs and more recently, drought conditions flowing along supply chains, continue to see input costs rise for manufacturers.

“Food and beverage manufacturers are reporting disrupted supply and higher prices for a range of agricultural inputs, while manufacturers operating in the metals and machinery and equipment subsectors who sell to the agricultural sector or its supply chain are reporting reduced sales. An exception is that drought conditions are also lifting meat production as farmers destock,” said Willox.

Related news & editorials

  1. 20.10.2020
    20.10.2020
    by      In , In
    St.George Bank chief economist Besa Deda has conducted an analysis of what the federal budget means for manufacturing and the sector’s role in the recovery from the COVID-19 recession.
    It is a budget Ms Deda describes as one for our times. “To do nothing or do little risks leaving future... Read More
  2. 15.09.2020
    15.09.2020
    by      In , In , In
    It may be seen as a bit of an irony to suggest that there has never been a much better time for manufacturing business to bask in the glory of public attention, especially during a time of COVID-19 pandemic.
    But according to Chief Executive Innes Willox from peak employer AiGroup, it is a time for... Read More
  3. 15.07.2020
    15.07.2020
    by      In , In
    St.George Chief Economist Besa Deda offers a renewed outlook for the Australian manufacturing sector as the fallout from the coronavirus pandemic continues.
    When COVID-19 hit the world in early 2020, economies were shattered as lockdowns forced social distancing and mass business closures. The... Read More
  4. 15.07.2020
    15.07.2020
    by      In , In , In
    Digitalisation and the acceleration of globalisation over the last two decades has offered Australian customers convenience and greater choice. Many local brands have taken a hit where international goods have succeeded due to their price competitiveness.
    While the COVID-19 pandemic has caused... Read More