none

MANUFACTURING OUTLOOK REMAINS POSITIVE IN DECEMBER

15-12-2017
by 
in 
Export growth

This week’s Australian Chamber-Westpac Survey of Industrial Trends for the December Quarter contained further good news for manufacturing industry, with continuing solid output, backlogs and new orders. And employment numbers and overtime are both expanding.

Westpac Senior Economist Andrew Hanlan describes the composite index number as “robust”, coming in as it does at 63.4 compared with the spectacular 66.1 in September.

“December’s results reflect the boost from increased investment in both state infrastructure projects as well as private non-mining construction. A relatively low Australian dollar and global growth are also supporting exporters,” said Hanlon.

He went on to say that: “The investment outlook for the sector is positive in response to rising demand and consistent with a reduction in the sector’s spare capacity, as well as improving profitability. A net 15% of firms expect to increase equipment investment in the next year.

“The survey’s Labour Market Composite, which broadly tracks economy-wide jobs growth, points to continued solid jobs growth in the near term. The index correctly foreshadowed the acceleration in Australian employment through 2017.”

James Pearson, Chief Executive Officer of the Australian Chamber of Commerce and Industry, said: “The economy appears to be gaining momentum but there is a weak spot, consumer spending, which remains flat.

“Tax cuts, for individuals and businesses, would stimulate spending, investment and jobs growth, which will lead to higher wages. It will also help ensure Australian businesses remain competitive in the global arena.”

The survey results and report are available from the Australian Chamber website.

 

Related news & editorials

  1. 07.09.2018
    07.09.2018
    by      In
    Fifteen companies from Victoria and South Australia have been named as recipients of almost $19 million worth of grants under the second and final phase of the government’s Advanced Manufacturing Growth Fund.
    The $47.5 million fund was set up in the 2017-18 Budget as part of a $100 million package... Read More
  2. 03.09.2018
    03.09.2018
    by      In
    Australian manufacturing continued its inexorable march forward during August, with the Ai Group’s Australian PMI rising back into high growth territory at 56.7 – up from July’s 52.0, which had suggested that growth was slowing. The August figure marks the 23rd consecutive month of expansion.... Read More
  3. 01.08.2018
    01.08.2018
    by      In
    The sustained growth of Australian manufacturing industry slackened off in July with the Ai Group’s Australian PMI dropping to 52.0 – down from 57.4 9 in June and further down from its high point of 63.1 in March 2018.
    However, the sector continues to grow, albeit at a slower rate, and the July... Read More
  4. 11.07.2018
    11.07.2018
    by      In
    “The National Electricity Market is largely broken and needs to be reset,” said ACCC Chair Rod Sims in launching the final report of the Australian Competition & Consumer Commission’s Retail Electricity Pricing Inquiry.
    Sims went on to acknowledge that: “Previous approaches to policy,... Read More