Posts Tagged ‘Index’

  • Printing tops manufacturing industry in growth ‘nudge’

    The local ‘printing and recorded media’ subsector topped the nation’s manufacturing industry growth figures in the month of June, according to the latest Australian Performance of Manufacturing Index (Australian PMI).

    Australian PMI, a seasonally adjusted national composite index put together by the Australian Industry Group (Ai Group), found that the Australian manufacturing sector as a whole ‘nudged growth’ in June, recording 49.6 points in the association’s ratings system – with anything over 50 points representing general growth.

    According to the Australian PMI, although this result sits just below the general growth point, it represents a 5.8 jump from the previous month’s result. Additionally, the report found that the collective printing and recorded media subsector of the manufacturing industry was the best performing subsector over the course of the month, recording a rating of 48.5 points.

    By contrast, the worst performing subsector for the month was metal products, coming in at just 34.3 points.

    The improvement in the overall reading for June from the previous month was largely due to an expansion in production (50.2 points) from the previous month, and improvements in the new orders index (49.9) and supplier deliveries (49.6).  However, despite falls in the Australian dollar, the industry lobby group says manufacturing exports continued to struggle.

    “The unexpected lift in the Australian PMI is a welcome, though tentative, sign that manufacturers’ efforts to fight back against the severe pressures facing the industry are beginning to pay off, said Innes Willox (pictured), Ai Group chief executive. “The Reserve Bank’s reductions in the cash rate appear to be supporting a weak pick-up in local demand and the drop in the exchange rate may be assisting domestic producers in the local market.  Export conditions, however, remain extremely challenging.

    “This month’s improved reading comes after two years of continuous decline and after two months of especially weak Australian PMI readings in April and May,” he said. “However, there is a need to be cautious about a single month’s reading, particularly because the inventory sub-index expanded strongly again in June, suggesting that sales are still lagging behind production.

    “Notwithstanding the very welcome fall in the Australian dollar over the past two months and the relatively low level of official interest rates, Australia remains a high-cost location for production and we need to generate a significant lift in productivity to restore competitiveness. This is critical if the manufacturing sector is to contribute to the economic resilience and diversification required as the mining investment boom fades,” he said.

    Australian PMI results are based on responses from around 200 companies from a rotating sample of manufacturers.