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. 10.08.2020
    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