video-banner
none

MANUFACTURING RETURNS TO FORM

01-11-2016
by 
in 

The Australian manufacturing industry has returned to growth, following predictions and trends that indicated August's slump was a temporary anomaly. 

The Australian Industry Group's Australian Performance of Manufacturing Index (Australian PMI) increased by 1.1 points in October, reaching 50.9 and indicating that after August's contraction, and September's stability, October was a month of gradual expansion. 

Ai Group Chief Executive, Innes Willox, said that "the lift of the Australian PMI® into growth territory, while only by the narrowest of margins, is nevertheless positive news after the inventory-related adjustment of a couple of months ago. Stronger exports, domestic sales and new orders in October are encouraging although growth remains relatively narrowly based, with contractions in the important metal products and non-metallic minerals sub-sectors broadly offsetting expansions in the machinery & equipment and petroleum & chemicals sub-sectors while the largest manufacturing sub-sector – food & beverages – trod water in October." 

This expansion of exports is a positive indicator that the power of Australian branding is still strong, and will likely play a large role in the manufacturing industry over the next quarter. 

Some comments from manufacturers suggest that expansion could have been even stronger, had the weather not been more favourable. Adverse conditions, and power supply issues in South Australia, put a dampener on an otherwise positive month. 

Construction, however, remains strong, with NSW leading the other states in construction activity. 

As for the individual trends: three of the five sub-indexes of manufacturing expanded in October (sales, new orders, exports), while two (employment and and inventories) decreased slightly, though none fell below a PMI of 45. 

Four of the eight sub-sectors expanded, also: Printing and recorded media, petroleum & chemical products, machinery & equipment, and food & beverages all continued expansion, continuing their run of strong performances.

With strong performances overall, October is a reassuring month for those who had concerns sparked by August's sudden decline, which interrupted 12 months of continuous growth in the industry as a whole.  

Related news & editorials

  1. 26.02.2020
    26.02.2020
    by      In
    Mobile and IoT management solutions specialist SOTI has expanded its Australian and New Zealand operations due to rapid uptake of its SOTI One platform. This has seen the company’s Australian workforce grow by over 50% in the last year.
    “SOTI has made significant investments within the ANZ region,... Read More
  2. 26.02.2020
    26.02.2020
    by      In
    A young family man who believes in outstanding service with strong professional backing has taken the next step to securing his family’s future by taking on a full franchise in Perth of the national Hydraulink hydraulic hose and fittings group.
    Matt Palmer, who now heads the new Hydraulink North... Read More
  3. 21.02.2020
    21.02.2020
    by      In
    CHEP Australia has unveiled its “Plant of the Future” concept with the opening of its newly upgraded Derrimut Service Centre, one of four Australian service centres to be upgraded as part of a global plant automation strategy.
    Speaking at the opening, Phillip Austin, President, CHEP Asia Pacific,... Read More
  4. 21.02.2020
    21.02.2020
    by      In
    Reed Exhibitions Australia has officially launched its Advanced Manufacturing Expo, a Sydney based event that will alternate with the company’s National Manufacturing Week, which held biennially in Melbourne.
    Advanced Manufacturing Expo 2020 will comprise a conference and exhibition targeted at... Read More