none

Manufacturing sector still feeling pressure

31-08-2010
by 
in 
Manufacturing sector still feeling pressure

 

Innes Willox … mounting costs

Australian manufacturing activity contracted for the ninth straight month in November due mainly to an ongoing decline in new orders and production.

The latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) dropped 1.6 points to 43.6 in November.

Readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease.

Food and beverages was the only sub-sector to expand in November. 

Textiles, clothing & footwear, chemical, petroleum and coal products, construction materials, basic metals and fabricated metals all recorded significant declines in activity.

"In each of the past eight months the production, employment, exports and new orders sub-indices have all declined, said Australian Industry Group Chief Executive, Innes Willox. “Over the same period wages and non-wage costs have risen while there has been downward pressure on selling prices.”

Mr Willox said the pressures on industry look set to continue.

"The key concerns for manufacturers remain the high dollar, rising energy costs and weak demand in export and local markets, he said. “These factors are exacerbated by the ongoing slump in the residential and commercial construction sectors and have not been offset by the reduction in interest rates to date. 

“Mounting costs are putting manufacturing businesses under relentless pressure, adding to the case for further interest rate cuts." 

Related news & editorials

  1. 18.10.2018
    18.10.2018
    by      In
    Amidst global concern about plastic waste in the world’s oceans, it is rather ironic that it is a soft drinks company that is actually doing something about the problem. SodaStream International, which has always taken a different approach to the soft drinks market, is now taking a different... Read More
  2. 16.10.2018
    16.10.2018
    by      In
    The Government has unveiled a $5 million scheme to encourage high-quality graduate engineers to work in Australia’s automotive sector. The Automotive Engineering Graduate Programme aims to increase the level of advanced engineering skills in the sector and is part of the $100 million Advanced... Read More
  3. 15.10.2018
    15.10.2018
    by      In
    Industry Update is delighted to announce that we are expanding our video offerings with a new series of tutorial style videos that perfectly complement our existing library of news style videos.
    In the first series, we are partnering with sensor specialist VEGA to publish eight playlists of videos... Read More
  4. 15.10.2018
    15.10.2018
    by      In
    Kennards Hire is certainly “doing its bit” to help Australia’s drought stricken farmers and their families. The work began with the Kennards branch network throwing itself behind the Buy a Bale initiative, and is now continuing with a key role in the Mega Farm Rescue.
    Kennards Hire team members... Read More