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. 20.04.2018
    20.04.2018
    by      In
    There will be a strong Australian flavour to the Siemens stand at this year’s Hannover Messe, which begins on the 23rd April. A group group of more than 100 people will be on hand, including members of the Prime Minister’s Industry 4.0 Taskforce, customers and stakeholders from a range of... Read More
  2. 19.04.2018
    19.04.2018
    by      In
    In a move welcomed by industry leaders and the WA Government, Chevron has greenlit an expansion of the Gorgon liquefied natural gas (LNG) project offshore Western Australia’s north-west coast, promising to deliver yet more jobs. 
    The Gorgon gas project, situated about 150km north of Onslow off the... Read More
  3. 19.04.2018
    19.04.2018
    by      In
    As nations around the globe search for new ways of handling waste following China’s decision to stop processing the world’s rubbish, a South Australian man is searching for investors to help build a commercial system that converts waste plastic into biogas.
    The extension of China’s ‘Operation Green... Read More
  4. 17.04.2018
    17.04.2018
    by      In
    Standing still is never an option in the media, and that is why we’ve given the Industry Update website a fresh new look with pages that are easier to navigate as well as being easy on the eye.
    According to Publisher Scott Filby: “Like any website, ours has grown organically over the years, gaining... Read More