Manufacturing continues freefall
The country’s manufacturing sector is continuing to struggle, with an ongoing fall in new orders keeping the industry in the red this November, according to the latest Australian Industry Group’s (AI Group) latest Australian Perfoemrnace of Manufacturing Index (Australian PMI).
The Index dropped 1.6 points to finish at 4.3 in November, where readings below 50 indicate contraction, with the distance from 50 indicative of the strength of the decrease.
"In each of the past eight months the production, employment, exports and new orders sub-indices have all declined. Over the same period wages and non-wage costs have risen while there has been downward pressure on selling prices,” AI Group’s CEO Innes Willox said.
"The key concerns for manufacturers remain the high dollar, rising energy costs and weak demand in export and local markets. These factors are exacerbated by the ongoing slump in the residential and commercial construction sectors and have not been offset by the reduction in interest rates to date.”
Australian PMI®: Key Findings for November:
- The November Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) was weaker in November falling 1.6 points to 43.6 (readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease).
- Food & beverages was the only subsector to expand - recording 50.7.
- Textiles, clothing & footwear; chemical, petroleum and coal products; construction materials; basic metals; and fabricated metals all recorded significant declines in activity.
- The new orders sub-index contracted for a ninth consecutive month - recording 43.5.
- Manufacturing inventories contracted again in November to 44.4.
- None of the states recorded increases in manufacturing activity in November.