none
none

PRODUCTION UP, BUT MANUFACTURING SECTOR CONTRACTS AGAIN

05-05-2015
by 
in 

Activity across the Australian manufacturing sector contracted for a fifth consecutive month in April, according to latest industry data.

But the good news is, the pace of contraction has eased.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) moved up 1.8 points to 48.0 (readings below 50 indicate a contraction in activity, with the distance from 50 indicative of the strength of the decrease).

All seven activity sub-indexes were below 50 points in April, with declines in sales (down 1.5 points to 44.7), new orders (up 1.6 points to 47.4), production (up 2.7 points to 49.3), supplier deliveries (down 0.4 points to 47.2) and stock levels (up 2.5 points to 45.9) indicative of very weak local demand.

Manufacturing exports ended four months of expansion (down 4.3 points to 47.5), mainly due to a decline in food and beverages exports (previously the strongest sector).

The food & beverages sub-sector (down 4.1 points to 55.3) remained one of four manufacturing sub-sectors to expand in April, with non-metallic mineral products (down 2.9 points to 54.5), wood & paper products (up 5.1 points to 55.2) and printing & recorded media (up 2.8 points to 61.4) also continuing in positive territory.

“Weak local demand continues to weigh heavily on Australian manufacturing, said Ai Group Chief Executive, Innes Willox.

“While there are benefits from strong residential construction activity, low interest rates, and the weaker Australian dollar, these are being outweighed by subdued local business investment in equipment, the ongoing drop in mining construction and the progressive closure of automotive assembly.”

Mr Willox said another cut in interest rates, widely tipped this month, may help boost demand.

But budgetary measures, particularly those targeting increased investment are more likely to provide the lift the domestic economy needs.

Related news & editorials

  1. 20.02.2018
    20.02.2018
    by      In
    An in-depth analysis of the battery industry in Australia has shown that lithium totals a $2 trillion investment opportunity, and despite investment in other kinds of battery technology, Australia must act or be left behind in lithium tech. 
    The Association of Mining and Exploration Companies (AMEC... Read More
  2. 20.02.2018
    20.02.2018
    by      In
    Lockheed Martin Australia has opened a new $12 million Lockheed Martin Australia House on the edge of Canberra’s Parliamentary Triangle. 
    The new office was opened by Defence Industry Minister Christopher Pyne, who said the company has cemented its ongoing commitment to Australia's defence industry... Read More
  3. 20.02.2018
    20.02.2018
    by      In
    Expressions of interest have now opened for trade works on the Osborne Naval Shipbuilding Precinct infrastructure project, promising up to 600 new construction jobs, and ongoing maintenance procedures. 
    Under the project, new facilities will be required to support the continuous build programs for... Read More
  4. 20.02.2018
    20.02.2018
    by      In
    With 'temporary' demountable structures making up more than one-in-ten classrooms in NSW, it is clear the education system is struggling to keep up with expansion. 
    Facing a future with more than five thousand demountables, many of which remain in place for upwards of ten years, the Centre for... Read More