none

Manufacturing recovery under threat

26-06-2014
by 
in 

Uncertainty surrounding the federal budget risks knocking off course a modest recovery in manufacturing.

A new report shows the manufacturing sector has expanded for three consecutive quarters, the first such run since 2011.

Westpac senior economist Andrew Hanlan says while conditions had improved on a year ago, the upturn has been relatively modest over the first half of 2014.

“The strength is fairly underwhelming,” he told reporters in Canberra last week.

The composite index in the Australian Chamber of Commerce and Industry (ACCI)-Westpac industrial trend survey rose to 51 points in the June quarter.

This was up slightly from 50.9 points in the previous three months and held above the key 50 point mark that separates expansion from contraction.

However, expectations for the September quarter slipped to an index of 49.6 points.

ACCI chief economic Burchell Wilson told reporters it was a “disturbing deterioration.”

“This is potentially a sign businesses are still uncertain about the future,” he said, citing the fate of the carbon tax and a range of other budget measures being particular concerns.

While expectations for new orders remain positive, they have been pared back and profits are expected to weaken over the year ahead.

Investment intentions also remain tentative, while jobs growth is expected to improve at only a modest pace.

Wages expectations, too, show a deterioration in growth on a par with the downturn during the 2008-09 global financial crisis.

However, Mr Hanlan expects a strengthening world economy in 2015 should provide more support for incomes and see consumers spend more freely.

Source: Fairfax Media

Related news & editorials

  1. 20.09.2018
    20.09.2018
    by      In
    Control Logic has set its sights on expansion, with a new leadership team incorporating key roles in products and marketing, sales and development, and operations and services. The move aims to increase the company’s skill set and focus to drive innovation and expand the company’s expertise and... Read More
  2. 19.09.2018
    19.09.2018
    by      In
    The Australian Made Campaign is providing some valuable support for the nation’s furniture manufacturers with its latest initiative, which urges local buyers to ‘take comfort in their purchase’ and choose genuine Aussie furniture, bedding and furnishings this spring.
    According to Australian Made... Read More
  3. 12.09.2018
    12.09.2018
    by      In
    Siemens has unveiled its new manufacturing facility in Yatala (Queensland), which has been set up to support the growing global demand for the locally developed Fusesaver medium-voltage circuit breaker.
    The new factory is part of an ongoing $25 million investment in manufacturing and research of... Read More
  4. 11.09.2018
    11.09.2018
    by      In
    APS Industrial has relocated its Melbourne base into an all-new 4500m2 head office and national distribution centre in Rowville. The new facility includes an interactive product showcase room and state of the art conference facility.
    According to APS Industrial MD David Hegarty, “Since our launch... Read More