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. 23.07.2019
    23.07.2019
    by      In
    Mouser Electronics has released the latest issue of its technology and solutions eZine, Methods. The new issue, The Future with 5G, highlights the upcoming arrival of 5G networks, their implications for internet access and the IoT, plus consumer and industrial services, as well as the remaining... Read More
  2. 23.07.2019
    23.07.2019
    by      In
    Power management company Eaton has welcomed Mobile Automation as an authorised system integrator for its power distribution partner program. Mobile Automation is an industrial electrical, engineering and automation solutions provider, with over 30 years’ experience servicing the Australian... Read More
  3. 23.07.2019
    23.07.2019
    by      In
    Tyre recycler Green Distillation Technologies is set to conduct the first industrial trials of revolutionary new thermoelectric technology from the USA.
    The devices fit around an exhaust flue and convert waste heat to electric energy. To date, prototype testing has been confined to the US... Read More
  4. 22.07.2019
    22.07.2019
    by      In
    Engineers are constantly seeking strong, lightweight materials for use in cars, planes and other vehicles to improve aerodynamics, speed, fuel efficiency and weight load. A world-first study by researchers from Monash University, Chongqing University (China) and the CSIRO has discovered a technique... Read More