none

MANUFACTURING FIGURES RECOVER FROM SEASONAL “BLIP”

01-03-2019
by 
in 

Australian manufacturing got back to work in February after a turgid mid-summer period with the Ai Group’s Performance of Manufacturing Index recovering further to a respectable 54.0. This marks a continuing recovery from the flat 50.0 in December 2018 and the mildly growing 52.5 in January.

However, the growth is not uniform, and some sectors are already beginning to suffer from the downturn in housing construction, and the continuing drought is also taking its toll.

So, while the large food and beverage sector remained strong in the mid 50s, the metal products and building products sectors both contracted on the back on the construction decline.

The individual activity indexes do give cause for optimism, with positive movements in selling prices (up to 51.6), employment (up by an impressive 6.6 points to 57.7), sales (54.4) and exports (55.2).

Interestingly, the deliveries index fell to 52.9 points while the finished stocks (inventories) index dropped to 44.5, suggesting that finished stocks are being depleted to meet demand.

Announcing the results, Ai Group Chief Executive Innes Willox said: "While positive, manufacturing performance is not back at the levels we saw in the first half of 2018 and only three of the six sub-sectors were in clear positive territory in February.

“New orders were somewhat higher in February pointing tentatively to a continuation of positive momentum over coming months,” he added.

“Looking over the longer term, there are major concerns about the high cost of electricity and gas, particularly in more energy-intensive industries."

 

Related news & editorials

  1. 09.03.2020
    09.03.2020
    by      In
    South Australia boasts a highly skilled and educated workforce, a renewed focus on entrepreneurship and innovation, and multi-billion-dollar defence industry contracts.
    The state’s world-class research institutions and universities, an investment in skills and the development of entrepreneurial... Read More
  2. 02.03.2020
    02.03.2020
    by      In
    While the manufacturing sector continues to decline with the Ai Group’s Performance of Manufacturing Index falling to a new low of 44.3 in February, there are grounds for optimism in some of the underlying data. Even though the PMI figure is the lowest for almost five years, key subindexes such as... Read More
  3. 27.02.2020
    27.02.2020
    by      In
    Industry Update sat down with Matthew Kelly, EM Manufacturing and Wholesaling, St.George, to find out his views on the financial health of the manufacturing sector in 2020.
    IU: How do you view the general financial climate for the Australian manufacturing sector in 2020?
    MK: I believe 2020 will see... Read More
  4. 14.02.2020
    14.02.2020
    by      In
    Universal Robots has teamed up with global vendor finance company DLL to launch a cobot leasing programme that will enable any manufacturer to reap the benefits of automation without worrying about cashflow or seasonal fluctuations.
    The global programme is expected to appeal to the market in... Read More