none

MANUFACTURING PERFORMANCE CONTINUES TO IMPRESS

01-02-2018
by 
in 
Australian manufacturing

The inexorable rise of the Australian Performance of Manufacturing Index during 2107 has continued into the new year with production leading the way. The AI Group’s Australian PMI has come in at 58.7 in January 2018, showing an increased level of growth, and the production subindex jumped to 62.7, its strongest figure since February 2017.

Announcing the figures, AI Group Chief Executive Innes Willox highlighted the strong performance from the food and beverage sector, together with the petroleum, coal and chemicals; metal products; and machinery and equipment subsectors.

However, he warned: “While production and sales volumes were robust and employment also grew, the combination of cost pressures – notably energy costs – and strong competition in part due to the recent rise in the value of the Australian dollar, continued to keep margins tight and restrain wage rises.”

“Now is the opportunity for policy makers to reinforce the optimistic start to the year to secure further investment and employment gains in 2018," added Willox.

Nonetheless, records continue to be broken. January 2018 goes down as the 16th consecutive month of expanding or stable conditions for the Australian PMI, making it the longest run of expansion since 2005. And it was also the the third consecutive month in which all seven activity subindexes expanded, with six – led by production - accelerating their pace of growth.

Ai Group
aigroup.com.au

Related news & editorials

  1. 11.03.2019
    11.03.2019
    by      In
    If hiring intentions are anything to go by, Australia is continuing its shift towards a service based economy, according to the latest ManpowerGroup Employment Outlook Survey. While the Q219 survey reveals a net employment outlook of +10%, this is very much driven the public administration and... Read More
  2. 01.03.2019
    01.03.2019
    by      In
    Australian manufacturing got back to work in February after a turgid mid-summer period with the Ai Group’s Performance of Manufacturing Index recovering further to a respectable 54.0. This marks a continuing recovery from the flat 50.0 in December 2018 and the mildly growing 52.5 in January.... Read More
  3. 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
  4. 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