none

MANUFACTURING GROWTH CONTINUES – ALBEIT AT A SLOWER RATE

03-10-2017
by 
in 
Australian manufacturing grew in September

Is Australian manufacturing beginning to run out of steam? The sustained growth of the Ai Group’s Australian PMI has begun to falter, with the September figure still in positive territory at 54.2, but well down from the previous month’s 15-year high of 59.8.

According to Ai Group Chief Executive, Innes Willox, "This year's recovery in manufacturing activity is continuing, but the September Australian PMI suggests that conditions are moderating and growth is decelerating.”

Nonetheless, the September 2017 figure marks the 12th consecutive month of growth.

Willox went on to point the finger of blame squarely at the energy sector, saying:
"Of great concern to all manufacturers continues to be the impact of energy and gas prices on their bottom line. Mounting energy costs are further squeezing already-fragile profitability."

And the figures bear this out, with the input prices sub-index rising to 65.8 points in September, fed by energy costs and increasing raw materials prices for some key commodities. Perhaps surprisingly, the wages sub-index also rose, reaching an above average 61.2 points in September.

The selling prices sub-index fell by 4.4 points to 49.3 in September.

In terms of industry sectors, the star performer was non-metallic mineral products, which hit a new record high of 75.5 points, while the other large sub-sectors grew at a slower pace.

The main positive sources of local demand for manufacturers in September 2017 included construction, mining and agricultural equipment, renewables and utilities.

Ai Group
aigroup.com.au

Related news & editorials

  1. 15.02.2019
    15.02.2019
    by      In
    The Australian Made Campaign is doing its bit to help one of its licensees to find a local contract manufacturer. The licensee is frank green, a company that markets reusable coffee cups in Australia. And while the company currently produces all its plastic reusable cup products in Australia, it... Read More
  2. 14.02.2019
    14.02.2019
    by      In
    Boker’s, the iconic US manufacturer of precision metal stampings, washers, spacers and shims, celebrates its 100th anniversary in 2019. The year will also see the opening of a new manufacturing facility and a fresh commitment to serve international markets, including Australia.
    The company was... Read More
  3. 14.02.2019
    14.02.2019
    by      In
    Universal Robots has appointed automation industry veteran Peter Hern to the role of ANZ Country Manager.
    Hern combines extensive experience in the technology, automation and robotics industries with local knowledge of ANZ manufacturing. In his new role he will be responsible for customer support,... Read More
  4. 13.02.2019
    13.02.2019
    by      In
    With the 2019 show set to be the biggest Austech 2019 yet, organiser AMTIL has come up with a novel approach to help visitors optimise their time at the event.
    Featuring all of the key machine tool dealers, all under the one roof, Austech 2019 will showcase a vast array of state-of-the-art... Read More