none

MANUFACTURING GROWS FOR TENTH CONSECUTIVE MONTH

03-08-2017
by 
in 
Manufacturing on the rise

Australian manufacturing has continued its upward path for the tenth consecutive month, with the Ai Group’s Performance of Manufacturing Index coming in at 56.0 for July.

The manufacturers surveyed for the report cited increased demand from construction, mining and agriculture for locally manufactured construction materials, machinery and equipment. Large government-funded projects in NSW and Victoria also increased demand, as did the nation’s ever-growing schedule of solar and wind power projects.

On the down side, manufacturers across many sectors report significant challenges from rapidly rising energy costs, higher raw material costs, the rising Australian dollar, and the impending departure of automotive assembly.

Overall, the data reveal that manufacturers’ margins are still under pressure. The input prices subindex increased by 4.4 points to 69.3 points, while the wages subindex decreased by 4.7 points to a less expansionary 55.7 points July.

The manufacturing selling price sub-index increased by 2.9 points to a neutral 50.0 points, with most subsectors showing negative or minimal growth in selling prices in July.

Ai Group Chief Executive, Innes Willox, highlighted that “production, sales, exports and employment all grew during the month, in part thanks to the strength of other key sectors including construction and agriculture, and the recovery of spending in the mining sector.”

“These growth opportunities more than offset the further decline of automotive assembly. They are also, at least for the time being, helping to mitigate the growing threats from unrelenting energy price rises and a higher dollar," he added.

Related news & editorials

  1. 15.07.2019
    15.07.2019
    by      In
    A new report from the Committee for Economic Development of Australia (CEDA) concludes that immigration to Australia has not harmed the jobs and earnings of local workers. The report, “Effects of temporary migration”, examines the impact of immigration and recent trends in temporary migration... Read More
  2. 09.07.2019
    09.07.2019
    by      In
    New research from the University of South Australia suggests that companies prioritising the environment are the ones reaping the financial rewards, contrary to the common perception that many businesses put profit first and a healthy planet a distant second.
    The study analysed 24,393 diverse firms... Read More
  3. 02.07.2019
    02.07.2019
    by      In
    Numerous studies have suggested that background music in the workplace can be a contributor to improved productivity – whether in an office environment, in the warehouse or on the shop floor.
    However, playing recorded or broadcast music in the workplace requires licensing to comply with the... Read More
  4. 01.07.2019
    01.07.2019
    by      In
    Small business accounting specialist Xero has published a report that attempts to quantify the magnitude and impact of late payments to Australian small businesses. The report, “Paying the Price: the economic impact of big businesses paying Australian small businesses late”, puts the value of... Read More