none

NO RECESSION (YET) BUT MANUFACTURING CONTINUES TO SHRINK

07-06-2017
by 
in 
Exports declined 2.6%

The March quarter figures from the Australian Bureau of Statistics make sobering reading, but at least the economy is not contracting. The headline figure for the quarter showed that the economy grew by 0.3% - a weak figure, but not the contraction of we had been warned.

One key aspect was the 2.6% decline in export volumes, led by iron ore and coal shipments interrupted by bad weather during the quarter.

In seasonally adjusted terms this means that annual growth has dropped to 1.7% from the record 2.4% in the fourth quarter last year.

Unfortunately, manufacturing continued its downward trend, with the tenth quarter of contraction out of the last eleven. This quarter’s decline was largely driven by contractions in food, beverage and tobacco products (down 3.5%) and metal products (down 2.4%).

It was the service industries that drove the March quarter result for gross value added (GVA) with strength recorded in wholesale trade, transport, postal and warehousing, financial and insurance services, professional, scientific and technical services, and health care and social assistance.

Interestingly, in the economy as a whole, the compensation of employees increased 1.0% in the March quarter, switching back from the negative growth recorded in the December quarter. However, the figure is still only 1.5% higher over the past 12 months.

Related news & editorials

  1. 01.08.2018
    01.08.2018
    by      In
    The sustained growth of Australian manufacturing industry slackened off in July with the Ai Group’s Australian PMI dropping to 52.0 – down from 57.4 9 in June and further down from its high point of 63.1 in March 2018.
    However, the sector continues to grow, albeit at a slower rate, and the July... Read More
  2. 11.07.2018
    11.07.2018
    by      In
    “The National Electricity Market is largely broken and needs to be reset,” said ACCC Chair Rod Sims in launching the final report of the Australian Competition & Consumer Commission’s Retail Electricity Pricing Inquiry.
    Sims went on to acknowledge that: “Previous approaches to policy,... Read More
  3. 05.07.2018
    05.07.2018
    by      In
    The Department of Industry, Innovation & Science has released the second in its series of three Industry Insights reports for 2018 - Globalising Australia. The report, which comes from the department’s Office of the Chief Economist, concludes that future growth opportunities will come from... Read More
  4. 02.07.2018
    02.07.2018
    by      In
    Australian manufacturing has continued its run of month on month growth, with the Ai Group’s Performance of Manufacturing Index sitting steady at 57.4 for June 2018. This marks the 21st consecutive month of growth, which is the longest such run since the 50 continuous months recorded from July 2001... Read More