none

MANUFACTURING ENDS YEAR ON A LOW

12-01-2015
by 
in 

Australia’s manufacturing sector ended 2014 with a contraction in activity, due mainly to a big drop in new orders.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) fell by 3.2 points to 46.9 in December. (Readings below 50 indicate a contraction in activity).

Only two of the seven activity sub-indexes – those for employment (up 4.7 points to 52.5) and exports (up 2.9 points to 51.0) – were above 50 points.

The new orders sub-index fell sharply (down 10.6 points to 43.7) following two months of mild expansion, reflecting slower growth or a decline in new orders across the manufacturing sub-sectors.

Manufacturing production also contracted for a second month (down 1.4 points to 46.0). Reflecting the weak trading conditions, supplier deliveries (down 3.5 points 48.5) and stocks (almost unchanged at 45.4) also contracted in December.

As in November, four of the eight manufacturing sub-sectors expanded in December. The large food, beverages & tobacco sub-sector continued to expand (up 1.3 points to 60.4), as did the smaller wood & paper products sub-sector – but at a much slower rate, dropping 10.5 points to 51.1. The textiles, clothing & furniture (up 4.2 points to 58.6) and non-metallic mineral products (up 12.4 points to 62.6) sub-sectors also expanded for a second consecutive month.

Ai Group Chief Executive, Innes Willox, said: “We would have hoped to have seen a stronger Australian PMI in the lead-up to Christmas, but the finding is consistent with other publicly released data.”

Respondents to the Australian PMI welcomed the further depreciation in the Australian dollar, but noted that the level of the dollar continues to encourage strong import competition.

Mr Willox said business sentiment and appetite for investment remain weak.

“The closure of Australian automotive assembly facilities now under way, plus the rapid decline in mining investment activity, are also weighing heavily on demand for locally made machinery inputs and components,” he said.

Related news & editorials

  1. 15.11.2018
    15.11.2018
    by      In
    It’s less than a year since Lapp Australia started trading, but the company has swiftly established itself in the local market, with significant penetration in sectors such as food and beverage, manufacturing, solar, sound and stage production, electrical contracting, machine building and... Read More
  2. 12.11.2018
    12.11.2018
    by      In
    Energy Vault has developed a novel solution to storage for renewable energy plants that involves neither batteries nor water.
    The Energy Vault system is based on the fundamental physics of potential and kinetic energy, and uses a proprietary, cloud-based software platform to operate a newly... Read More
  3. 07.11.2018
    07.11.2018
    by      In
    With a combination of its industry-leading fans and energy-efficient lighting products, Big Ass is improving working conditions in Australia and around the globe.
    Blazing Queensland temperatures and humidity were creating uncomfortable working conditions at XL Service Bodies, an industry-leading... Read More
  4. 07.11.2018
    07.11.2018
    by      In
    ABB has thrown its weight behind the OPC Foundation in its bid to define the worldwide industrial interoperability standard. The new Open Platform Communication Unified Architecture (OPC UA) standard has the potential to enable industrial players to unlock the full potential of Industry 4.0.
    OPC UA... Read More