video-banner
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. 07.10.2019
    07.10.2019
    by      In
    The US manufacturing sector is in decline. The Institute of Supply Management's manufacturing index dropped to 47.8 in September, an unexpected fall from the already contracting figure of 49.1 recorded in August. Significantly, the figure is the lowest since June 2009 at the end of the Global... Read More
  2. 04.10.2019
    04.10.2019
    by      In
    The St.George Bank Happy Dragon made a surprise and rather athletic appearance in Parramatta Park last month as part of the Coleman Greig Challenge. Inside the suit was none other than regular Industry Update contributor Matthew Kelly, Head of Manufacturing & Wholesale at St.George Bank.
    The... Read More
  3. 01.10.2019
    01.10.2019
    by      In
    Positive signs continued for the manufacturing sector in September, with the Ai Group’s Performance of Manufacturing Index rising 1.6 points to 54.7, continuing a sustained run of growth only spoiled by a negative blip at the time of the federal election.
    The underlying data provide mostly positive... Read More
  4. 11.09.2019
    11.09.2019
    by      In
    An opportunity has arisen to purchase a well-established Australian company with substantial experience, a strong reputation and ongoing contracts in materials handling, manufacturing and warehousing.
    The technology-led company is profitable, and has a consistent annual turnover in the region of $5... Read More