video-banner
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. 07.10.2019
    07.10.2019
    by      In
    The US manufacturing sector is in decline. The Institute of Supply Management's manufacturing index dropped to 47.8 in September, an unexpected fall from the already contracting figure of 49.1 recorded in August. Significantly, the figure is the lowest since June 2009 at the end of the Global... Read More
  2. 04.10.2019
    04.10.2019
    by      In
    The St.George Bank Happy Dragon made a surprise and rather athletic appearance in Parramatta Park last month as part of the Coleman Greig Challenge. Inside the suit was none other than regular Industry Update contributor Matthew Kelly, Head of Manufacturing & Wholesale at St.George Bank.
    The... Read More
  3. 01.10.2019
    01.10.2019
    by      In
    Positive signs continued for the manufacturing sector in September, with the Ai Group’s Performance of Manufacturing Index rising 1.6 points to 54.7, continuing a sustained run of growth only spoiled by a negative blip at the time of the federal election.
    The underlying data provide mostly positive... Read More
  4. 11.09.2019
    11.09.2019
    by      In
    An opportunity has arisen to purchase a well-established Australian company with substantial experience, a strong reputation and ongoing contracts in materials handling, manufacturing and warehousing.
    The technology-led company is profitable, and has a consistent annual turnover in the region of $5... Read More