video-banner
none

Manufacturing dips further in September

31-08-2010
by 
in 
Manufacturing dips further in September

 

 

Innes Willox … ‘sharp falls’

Another drop in manufacturing new orders contributed to a further decline in overall manufacturing activity in September according to the latest industry data.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) fell 1.2 points to 44.1 in the month.

Readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease.

A pullback in the mining sector, soft demand, stronger import competition, the strong Australian dollar and rising utility costs were among the factors cited as impacting manufacturing activity in September.

Surprisingly, the three sub-sectors that expanded in August – food & beverage, wood products & furniture and miscellaneous manufacturers – fell back into the red in September. 

Meanwhile, paper, printing & publishing (69.6) and textiles, clothing & footwear (55.3) saw expansions in activity in September.

Australian Industry Group Chief Executive, Innes Willox, said: "The softer conditions for manufacturers recorded in September looks like continuing in the months ahead with a sharper decline in the forward-looking new orders sub-index. 

“Suppliers to the mining sector, which have generally been a source of encouraging news in recent years, reported sharp falls in new orders as the mining sector responds to reduced prices and an increased likelihood of reductions in demand, he said.  

 "The ongoing strength of the Australian dollar, together with further rises in wages and input costs and a continuation of reported falls in selling prices, exacerbated the squeeze on margins that has been evident for some time.  There are certainly no signs of any inflationary pressures that might inhibit further reductions in interest rates." 

Related news & editorials

  1. 10.10.2019
    10.10.2019
    by      In
    The Energy Efficiency Council and Sustainability Victoria have unveiled a programme of joint free-to-attend energy management workshops that will run across both days of the inaugural Energy Efficiency Expo (23rd and 24th October at the Melbourne Convention & Exhibition Centre).
    Running... Read More
  2. 10.10.2019
    10.10.2019
    by      In
    Industry Update is expanding its video production portfolio with a new series of documentary videos, initially looking at some of the key safety issues affecting our industry.
    In the first two-part mini-series we’ve turned our attention to the key topic of workplace traffic management – looking at... Read More
  3. 08.10.2019
    08.10.2019
    by      In
    A vineyard drip-tube recycling programme in South Australia is proving the viability of the circular economy for an increasingly sustainable wine industry.
    The programme has recycled 1500km of drip tube this year, yielding 110 tonnes of resin that has been turned into irrigation pipe and plastic-... Read More
  4. 04.10.2019
    04.10.2019
    by      In
    A fully compostable shrink wrap for cucumbers has been developed in South Australia and is set to be launched on international markets.
    The compostable wrap is manufactured by BioBag World Australia and took 12 months to develop in partnership with South Australian produce and packaging businesses... Read More