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. 11.02.2019
    11.02.2019
    by      In
    Alic Knispel knew the meaning of hard work and the value of a dollar. In fact, in 1933, he jumped on his pushbike and rode 227km from Adelaide to Moorook in South Australia’s Riverland just to get a job.
    As a young man, he toiled hard and saved fastidiously for many years to save up enough to buy a... Read More
  2. 06.02.2019
    06.02.2019
    by      In
    Brian Hughes’ journey as Managing Director of Composite Materials Engineering (CME) has spanned three decades. With a continued focus on diversifying as much as possible, the business has always “tried not to be in one business or one market all the time,” he says.
    This has seen CME dabble... Read More
  3. 04.02.2019
    04.02.2019
    by      In
    When you think of staircase construction, the first things that come to mind are traditional trades, such as carpentry and metalwork – but one forward-thinking manufacturing business that has been crafting staircases since 1971 has taken innovative steps to futurise its business with the use of... Read More
  4. 04.02.2019
    04.02.2019
    by      In
    Microbreweries are an expanding part of the Australian food and drink manufacturing sector. However, because of their scale, they face a dilemma on how to keep production levels rising while capping costs.
    For those of us who love the amber nectar, the plethora of beers has never been greater. Many... Read More