none

MANUFACTURING OFF TO A STRONG START IN 2016

02-02-2016
by 
in 

The Australian manufacturing sector expanded for a seventh straight month in January.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) declined marginally by 0.4 points to 51.5 to remain above the 50-point level separating expansion from contraction.

This result continued the longest run of expansionary readings since 2010.

Four of the eight manufacturing sub-sectors expanded (above 50 points in three-month moving averages), led by wood & paper products (unchanged at 64.3); petroleum, coal, chemical & rubber products (up 3.9 points to 59.1); and food, beverages and tobacco (up 4.9 points to 56.7). Textiles, clothing, furniture and other manufacturing was broadly stable (50.1 points).   

The non-metallic mineral products sub-sector ended three months of expansion (down 6.4 points to 47.8), while machinery and equipment remained in contraction but is moving steadily towards stabilising with its best result since June 2014 (up 0.4 points to 47.6).

Ai Group Chief Executive, Innes Willox, says manufacturers are benefitting from the lower dollar, enjoying greater share of the domestic market and increased export opportunities.

“The ongoing strength of new orders points to further growth in the months ahead, notwithstanding the contraction in business for automotive supply chains and the further decline in orders from the resources sector,” Mr Willox said.

“While the overall growth is clearly encouraging, there is still a considerable way to go before manufacturing is contributing fully to the much-needed diversification of the domestic economy.”

Related news & editorials

  1. 24.05.2018
    24.05.2018
    by      In
    Rio Tinto has announced that Australia’s Office of the National Rail Safety Regulator has approved the autonomous operation of trains at its iron ore businesses in WA.
    After several years of regulatory hurdles, delays, and slowly increasing coverage of its automated haulage network of freight... Read More
  2. 24.05.2018
    24.05.2018
    by      In
    A new reactive battery system has been switched on, stabilising the power grid of a coastal town with wildly variable energy demands.
    The autonomous system is located in the fishing village of Cape Jervis, and is part of a $3.65 million power stabilisation trial that could lead to town batteries... Read More
  3. 24.05.2018
    24.05.2018
    by      In
    The world of workplace health and safety descended on the Melbourne Convention & Exhibition Centre yesterday for the first day of the all-new Workplace Health & Safety Show. And it did so in big numbers, with the opening day attendance estimated in excess of 1200.
    It helped that the show is... Read More
  4. 23.05.2018
    23.05.2018
    by      In
    International industry leaders in renewable energy and storage are meeting in Adelaide for the 2018 Australian Energy Storage Conference and Exhibition.
    Sam Staples, AES Sales Manager and Conference Programme Manager, said South Australia’s ongoing work in the renewable energy sector makes it the... Read More