none

MANUFACTURING EXPANSION EASES IN APRIL

03-05-2016
by 
in 
Manufacturing expansion eases in April

Australian manufacturing activity retreated in April following a 12-month high the previous month.

The Australia Industry Group’s performance of manufacturing index fell to 53.4 last month from 58.1 in March – the biggest fall since last June.

But alarm bells should not be ringing just yet.

The sector remains in expansionary territory (above the threshold of 50 points).

The April result comes off a very strong Australian PMI in March (the highest since April 2004) and continues the current run of expansions to ten months, the longest unbroken period of growth for the Australian PMI® since September 2006.

The depreciation of the Australian dollar continues to drive the sector, assisting growth in exports and import-competing sales. Although the Australian dollar has appreciated again, key manufacturing sectors continue to expand, albeit at a slower pace.

Of the seven activity sub-indexes in the Australian PMI® all expanded in April except employment. Production (56.8 points), sales (56.8 points) and stocks (56.7 points) expanded strongly. New orders grew at a slower pace, but remained in mild expansion.

Five of the eight manufacturing sub-sectors in the Australian PMI® expanded in April (three month moving averages), the same number as March.

The large food & beverages sub-sector, continued to outperform the other sectors, moving up to a record 74.1 points. Wood & paper also expanded strongly in April (65.8 points) as did non-metallic mineral products (57.5 points). The March recovery in the machinery & equipment sub-sector was short-lived with this key sub-sector moving back into contraction in April (47.8 points).

Ai Group Chief Executive, Innes Willox, said: “The current expansion in manufacturing is a much-needed turnaround for a sector that has been through a very tough decade. “While margins remain tight, recovering domestic market share and building momentum in a variety of export markets provide a strong foundation for the lift in confidence required for the sector to move up another gear.”

Related news & editorials

  1. ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    04.03.2021
    04.03.2021
    by      In , In
    A $1 billion major industrial and logistics community project is set to begin construction in Western Sydney.
    ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    The project is... Read More
  2. Karen Andrews
    04.03.2021
    04.03.2021
    by      In , In
    Australia’s rare earths and critical minerals were described as leading global assets, in a new grant program announced today from Tomago in the NSW Hunter region. 
    These comments were made as Minister for Industry, Science and Technology Karen Andrews, along with Prime Minister Scott Morrison,... Read More
  3. Editor Barry O’Hagan
    04.03.2021
    04.03.2021
    by      In , In
    Industry Update would like to give a warm welcome to our new editor, Barry O’Hagan.
    Barry brings a wealth of experience to the role, having worked as a media professional for more than 25 years.
    A former newspaper and magazine journalist, he has a passion for telling the stories of businesses and... Read More
  4. Westpac’s Institutional arm found 57% of large corporations in this hemisphere have begun onshore supply and manufacture.
    04.03.2021
    04.03.2021
    by      In
    This time last year, Industry Update asked the question: “Is it time to bring Manufacturing Back Home?”
    The answer to that question is no different now – and the industry responded with a resounding ‘YES’.
    Manufacturing remains a backbone of the Australian economy. We need it now more than ever and... Read More
Products
Suppliers