video-banner
none

THAT WAS THE YEAR THAT WAS: 2016 ENDS WITH CONTINUED GROWTH

03-01-2017
by 
in 
Manufacturing exports rose in December 2016

It may not have seemed to be a boom year for Australian manufacturing, but the latest Australian Performance of Manufacturing Index figures from AI Group confirm that 2016 was, on the whole, a positive year. The Australian PMI rose by 1.2 points to 55.4 in December, leaving 2016 with an average figure of 52.7.

The devil is, of course, in the detail. And here there are mixed messages. The welcome strong growth in exports (12.6 points higher in December, rising to an impressive 68.5) helped by the weakening Australian dollar, was tempered by weaker jobs growth with the employment sub-index falling 4.9 points to 47.4.

Similarly, while the Australian PMI wages sub-index rose by a robust 8.5 points to 62.3 in December, suggesting the potential for manufacturing wage growth early in 2017, the manufacturing selling prices sub-index dropped by 6.1 points to a new low of 45.4, showing that manufacturing margins continue to contract heading into the new year.

According to Australian Industry Group Group Chief Executive, Innes Willox: "Despite a small fall in sector-wide employment in December, manufacturing production, sales, exports, and new orders all grew strongly in the month, providing a running start to the new year. Four of the five larger manufacturing subsectors – food and beverages; petroleum, coal, chemicals and rubber products; non-metallic mineral products; and machinery and equipment – saw healthy growth while the metal products subsector closed a difficult year in the red.”

“The positive result for producers of machinery and equipment comes despite the steading unwinding of automotive assembly and points to a tentative pick-up in business investment. Early passage of the Government’s Enterprise Tax Plan would provide momentum and an important boost to activity," concluded Willox.

Ai Group
aigroup.com.au

Related news & editorials

  1. 10.10.2019
    10.10.2019
    by      In
    The Energy Efficiency Council and Sustainability Victoria have unveiled a programme of joint free-to-attend energy management workshops that will run across both days of the inaugural Energy Efficiency Expo (23rd and 24th October at the Melbourne Convention & Exhibition Centre).
    Running... Read More
  2. 10.10.2019
    10.10.2019
    by      In
    Industry Update is expanding its video production portfolio with a new series of documentary videos, initially looking at some of the key safety issues affecting our industry.
    In the first two-part mini-series we’ve turned our attention to the key topic of workplace traffic management – looking at... Read More
  3. 08.10.2019
    08.10.2019
    by      In
    A vineyard drip-tube recycling programme in South Australia is proving the viability of the circular economy for an increasingly sustainable wine industry.
    The programme has recycled 1500km of drip tube this year, yielding 110 tonnes of resin that has been turned into irrigation pipe and plastic-... Read More
  4. 04.10.2019
    04.10.2019
    by      In
    A fully compostable shrink wrap for cucumbers has been developed in South Australia and is set to be launched on international markets.
    The compostable wrap is manufactured by BioBag World Australia and took 12 months to develop in partnership with South Australian produce and packaging businesses... Read More