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. 18.10.2018
    18.10.2018
    by      In
    Amidst global concern about plastic waste in the world’s oceans, it is rather ironic that it is a soft drinks company that is actually doing something about the problem. SodaStream International, which has always taken a different approach to the soft drinks market, is now taking a different... Read More
  2. 16.10.2018
    16.10.2018
    by      In
    The Government has unveiled a $5 million scheme to encourage high-quality graduate engineers to work in Australia’s automotive sector. The Automotive Engineering Graduate Programme aims to increase the level of advanced engineering skills in the sector and is part of the $100 million Advanced... Read More
  3. 15.10.2018
    15.10.2018
    by      In
    Industry Update is delighted to announce that we are expanding our video offerings with a new series of tutorial style videos that perfectly complement our existing library of news style videos.
    In the first series, we are partnering with sensor specialist VEGA to publish eight playlists of videos... Read More
  4. 15.10.2018
    15.10.2018
    by      In
    Kennards Hire is certainly “doing its bit” to help Australia’s drought stricken farmers and their families. The work began with the Kennards branch network throwing itself behind the Buy a Bale initiative, and is now continuing with a key role in the Mega Farm Rescue.
    Kennards Hire team members... Read More