none

MANUFACTURING CONTINUES GROWTH DESPITE AUTOMOTIVE CLOSURES

01-11-2017
by 
in 
Manufacturing grows despite automotive closures

Australian manufacturing continued to grow in October, despite the closure of both the country’s remaining automotive assembly plants. The Ai Group’s Australian PMI came in at 51.1 for the month, a figure that is still indicative of growth, albeit at a much-reduced rate than in recent months.

It did, however, mark a 13th consecutive month of growth, and the longest run of expansion since 2007.

Announcing the figures, Ai Group Chief Executive, Innes Willox, pointed out: "October marked the final, historic end of automotive assembly in Australia. This was reflected in lower results (and an absolute contraction) in the Australian PMI in South Australia. However, outside of the automotive sub-sector, conditions appeared to be relatively buoyant, if a touch slower, for manufacturers in October.”

When viewed by subsectors, the star performer remained the non-metallic mineral products sector, which remained at its record high of 72.2 in October held up by strong demand for building-related products. Food and beverages also continued to perform well (rising to 57.1). And the all-important machinery and equipment subsector remained in positive territory at 56.4, a slight drop from the high in September.

In terms of activity, October was a poor month for production, with that subindex dropping into negative territory at 48.4. This was also reflected in a drop in capacity utilisation to 74.7% - the lowest this year.

Balancing the books continues to be a problem, though. The manufacturing selling price subindex remains in negative territory below 50, indicating minor price reductions during October. Meanwhile, the input prices subindex continues to rise (reaching 66.2 in October) fuelled by electricity and gas price rises together with certain key materials shortages in the food processing sector.

Ai Group
aigroup.com.au

Related news & editorials

  1. 11.02.2019
    11.02.2019
    by      In
    Alic Knispel knew the meaning of hard work and the value of a dollar. In fact, in 1933, he jumped on his pushbike and rode 227km from Adelaide to Moorook in South Australia’s Riverland just to get a job.
    As a young man, he toiled hard and saved fastidiously for many years to save up enough to buy a... Read More
  2. 06.02.2019
    06.02.2019
    by      In
    Brian Hughes’ journey as Managing Director of Composite Materials Engineering (CME) has spanned three decades. With a continued focus on diversifying as much as possible, the business has always “tried not to be in one business or one market all the time,” he says.
    This has seen CME dabble... Read More
  3. 04.02.2019
    04.02.2019
    by      In
    When you think of staircase construction, the first things that come to mind are traditional trades, such as carpentry and metalwork – but one forward-thinking manufacturing business that has been crafting staircases since 1971 has taken innovative steps to futurise its business with the use of... Read More
  4. 04.02.2019
    04.02.2019
    by      In
    Microbreweries are an expanding part of the Australian food and drink manufacturing sector. However, because of their scale, they face a dilemma on how to keep production levels rising while capping costs.
    For those of us who love the amber nectar, the plethora of beers has never been greater. Many... Read More