none

MANUFACTURING EXPANDS IN JUNE

01-07-2020
by 
in 

The manufacturing sector has grown in June, according to the latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) figures.

Industry jumped 9.9 points to 51.5, the largest ever monthly rise and a positive result in the wake of April’s largest ever monthly fall in the PMI.

However, the boost was narrowly focused on a few sub-sectors and indicates improvement rather than recovery.

“Manufacturing performance edged ahead in June largely on the back of a solid lift in the large food and beverages sector as restrictions on cafes and restaurants were eased,” says Ai Group chief executive Innes Willox.

New orders from food wholesale distributors drove almost all of the June improvement, which was concentrated in the large food and beverages sector.

In contrast, suppliers of locally made metal products and building materials to the construction industry reported a decline in new orders, but the machinery and equipment sector enjoyed an end-of-financial-year sales spike as buyers rushed to take advantage of expanded instant asset write-off provisions.

While three of the Australian PMI’s activity indices indicated expansion in June, three indicated contraction, including a continued decline in exports.

Production rose across the manufacturing sector, and new orders rebounded from the lows of April and May.

“Employment on the other hand merely stabilised after the contractions of the previous two months,” Willox says.

Wage levels also levelled off after May’s very rare fall.

September will see Federal Government stimulus measures, including JobKeeper, wind up in what economists refer to as “the cliff”.

“We are still well short of a recovery even with the quantity of fiscal stimulus in the economy,” Willox says.

“The next couple of months will provide a critical test of how well the economy is positioned to cope with the withdrawal of stimulus currently scheduled for the end of September.”

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