none

MANUFACTURING MAKES GAINS IN JUNE

05-07-2016
by 
in 

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) has edged up 0.8 points to 51.8 points in June, taking the index into more expansionary territory.

The June results have come after some expansionary conditions in May and marks a complete twelve months of continuous expansion.

The continued expansion in the Australian PMI® is linked to the fall of the exchange rate over recent years.

With the Australian dollar now considerably lower than its peak of nearly five years ago, manufacturers have regained some of the competiveness that was given up during that period of high exchange rates.

Five of the seven manufacturing activity sub-indexes in the Australian PMI® remained above 50 points in June.

Production (54.4 points), new orders (54.1 points) and sales (53.7 points) drove the expansion for the month and this bodes well for future months.

The employment sub-index remained (47.9 points) and deliveries slipped into mild contraction (48.9 points) for the month.

The strongest sub-sectors were petroleum & chemical products (62.1 points), non-metallic mineral products (58.3 points) and wood & paper products (57.7 points). The food & beverage sub-sector lost some steam in the month (down 11.6 points to 53.7 points) but kept expanding. Metal products (50.5 points) and printing & recorded media (50.2 points) lifted out of contraction. The textiles & clothing products (48.9 points) and machinery & equipment (44.8 points) sub-sectors both contracted for the month.

Comments from manufacturers in June indicate continuing uncertainty surrounding the impending Federal Election

 “The mild expansion of manufacturing in June capped a year in positive territory for the Australian PMI®." said Innes Willox, Ai Group Chief Executive.

"It was a year in which manufacturers took advantage of the boost to competitiveness from the lower Australian dollar both in the domestic market and in export markets. The metal products sub-sector, which has been heavily impacted by adverse global conditions in recent times, recorded its first expansion since September 2010. The important food and beverages sub-sector continued in positive territory although there are now signs of a slowdown and the machinery and equipment sub sector was weaker – in part due to the low levels of business investment across the economy and the gradual wind-down of auto assembly."

"The clear imperative for the sector is for a lift in investment both within the sector itself and more broadly across the economy,” he concluded,

Related news & editorials

  1. 14.11.2018
    14.11.2018
    by      In
    Although Australia’s small and medium-sized businesses generate employment, drive innovation and boost competition, it has always been difficult for them to get credit finance from banks, especially in the past few months, due to the royal commission into financial services, stricter loan... Read More
  2. 01.11.2018
    01.11.2018
    by      In
    The growth of the manufacturing sector continued through October 2018, with the Ai Group’s Performance of Manufacturing Index holding firm at 58.3, just a tick below September’s rating of 59. The 25th consecutive month of PMI ratings above 50 (indicating growth) comes with further encouraging... Read More
  3. 22.10.2018
    22.10.2018
    by      In
    St.George Banking Group, UNSW Sydney and the Advanced Manufacturing Growth Centre (AMGC) are teaming up to advance Australian research and accelerate the introduction and commercialisation of new manufacturing technologies.
    The alliance brings together three different strands of the national... Read More
  4. 09.10.2018
    09.10.2018
    by      In
    Integrated Office Solutions has an intriguing proposition for any company (manufacturing or otherwise) that is experiencing difficulties recruiting and retaining staff in roles that are not location dependant. Why not outsource the roles or set up a team in a country where skills are plentiful and... Read More