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. 15.09.2021
    15.09.2021
    by      In
    Following the ongoing situation with Covid-19 in NSW and other states, a decision has been made to reschedule Electronex – Electronics Design & Assembly Expo at Rosehill Gardens to the 5 – 6 April 2022.
    Noel Gray, Managing Director of show organiser AEE said, “we were hopeful that we would be... Read More
  2. 13.09.2021
    13.09.2021
    by      In
    The Australian Manufacturing Technology Institute Limited (AMTIL) have announced changes to the schedule for next year’s Australian Manufacturing Week (AMW) exhibition, relocating and rescheduling the event from Melbourne in March to Sydney in June.
    The AMTIL Board has decided not to proceed with... Read More
  3. 13.09.2021
    13.09.2021
    by      In
    The general public view manufacturing as vital to our nation’s economy and critical to maintaining our high-living standards according to recent research carried out by the Federal Government’s Advanced Manufacturing Growth Centre (AMGC).
    When comparing data gathered pre-COVID-19 to today, it was... Read More
  4. 13.09.2021
    13.09.2021
    by      In
    Three new missions from CSIRO will grow Australia’s agriculture and food sectors targeting $20 billion by 2030.
    CSIRO Chief Executive Dr Larry Marshall said the three missions together aim to capture a $20 billion opportunity for Australian agriculture to extend its position as a world leader. “We’... Read More
Products
Suppliers