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. 24.05.2018
    24.05.2018
    by      In
    Rio Tinto has announced that Australia’s Office of the National Rail Safety Regulator has approved the autonomous operation of trains at its iron ore businesses in WA.
    After several years of regulatory hurdles, delays, and slowly increasing coverage of its automated haulage network of freight... Read More
  2. 24.05.2018
    24.05.2018
    by      In
    A new reactive battery system has been switched on, stabilising the power grid of a coastal town with wildly variable energy demands.
    The autonomous system is located in the fishing village of Cape Jervis, and is part of a $3.65 million power stabilisation trial that could lead to town batteries... Read More
  3. 24.05.2018
    24.05.2018
    by      In
    The world of workplace health and safety descended on the Melbourne Convention & Exhibition Centre yesterday for the first day of the all-new Workplace Health & Safety Show. And it did so in big numbers, with the opening day attendance estimated in excess of 1200.
    It helped that the show is... Read More
  4. 23.05.2018
    23.05.2018
    by      In
    International industry leaders in renewable energy and storage are meeting in Adelaide for the 2018 Australian Energy Storage Conference and Exhibition.
    Sam Staples, AES Sales Manager and Conference Programme Manager, said South Australia’s ongoing work in the renewable energy sector makes it the... Read More