Manufacturing slumps in July


The manufacturing industry slumped in July reflecting the tough trading conditions that continue to restrict growth in the sector. 

The latest seasonally adjusted Australian Industry Group – PwC Australian Performance of Manufacturing Index (Australian PMI) fell 9.5 points to 43.4 in July to be below the 50 point level separating expansion from contraction.

The decline in activity was evident across manufacturing with only three of the twelve sub-sectors expanding in July. 

The best performing sub-sector in the month was construction materials (61.5) while wood products and furniture was the weakest performing sub-sector (18.5). New orders fell sharply in July, down 14.4 points to 40.2.

"The difficulties facing manufacturing due to the high dollar and sluggish domestic demand intensified in July, said Australian Industry Group Chief Executive, Heather Ridout.

“The survey respondents indicated that adding to their broader concerns was the prospect of a carbon tax and this was clearly weighing on sentiment, Ms Ridout said.  “Perversely, the only indicators of broad business conditions showing an increase were input costs and wages, both of which are negatives for the industry.

"We are currently in the midst of a boom and gloom economy and I defy anybody to say with any degree of certainty what the impact would be on the Australian economy if the dollar remains at current levels for a protracted period. 

“The high dollar and high interest rates are impacting on the big employing sectors in Australia.  This, together with the volatile and precarious state of international economic conditions and ongoing political uncertainty in Australia, are seriously undermining business confidence in large parts of the economy."


  1. Industry 4.0 – or the Fourth Industrial Revolution, where the computerisation of industry becomes optimised through increased interconnectivity and smart automation – is a hot topic in global circles. But it’s not a matter of just magically flicking a switch and transforming your facility into a...
  2. The transformation of Australia’s recycling sector has stepped up another gear with the Australian and Victorian Governments jointly announcing 13 new projects that will see 137,000 tonnes of plastics, paper, glass and tyres remade into new products while creating new jobs and new investment in the...
  3. The high performance flooring system market size is estimated to reach US$15.29 Billion in 2028. This is being driven by increasing use of heavy-duty flooring materials in various industrial and commercial facilities is a key factor driving global market revenue growth.
    According to the latest...