Australian manufacturing ends year on a high

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  • Plant & Equipment

Australia’s manufacturing industry has ended the financial year on a high note, recording its 21st consecutive month of expansion according to the latest Australian Performance of Manufacturing Index.

June -2018-PMI-results

The monthly business survey, conducted by the Ai Group, gave a reading of 57.4 points for the month of June (readings above 50 indicate growth). The result is actually a 0.1 point decrease on the previous month; however the result is the longest period of expansion since 2005.

The AI Group says the results are good to see, especially when supply chains in parts of the country are experiencing the effects of drought. The group also noted it was concerned about energy prices going forward.

"Manufacturing production, employment, exports and sales were all higher in June, driving the Australian PMI to its longest run of expansion in well over a decade," Ai Group chief executive Innes Willox says.

"Growth was evident across the manufacturing sector including in the large food & beverages, metal products and machinery & equipment sub-sectors even though the drought conditions in some parts of the country are flowing along supply chains into these sub-sectors.

"With new orders continuing to come in at growing levels, the immediate outlook is for further growth in production and employment.

"As to the longer term, manufacturers, particularly those in more energy intensive segments of the sector, remain concerned about ongoing uncertainty over energy policy and its dampening impact on the investment needed to ease price pressures," Willox adds.

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