Australian Industry Group (AiG) Performance of Manufacturing Index for June comes in at 51.8
- prior 51.0
Another 'expansion' reading for Aussie manufacturing
AiG's 'key findings' from the june survey;
- marks a complete twelve months of continuous expansion, the equal longest expansion over the last decade
- The continued expansion is linked to the fall of the exchange rate over recent years (despite some periods of strengthening)
- Five of the seven manufacturing activity sub-indexes in the Australian PMI® remained above 50 points in June; production (54.4 points), new orders (54.1 points) and sales (53.7 points) stand outs. Employment sub-index remained in contraction (47.9 points) and deliveries slipped into mild contraction (48.9 points) for the month
- Six of the eight manufacturing sub-sectors expanded in June (three month moving averages). The strongest sub-sectors were petroleum & chemical products (62.1 points), non-metallic mineral products (58.3 points) and wood & paper products (57.7 points). The food & beverage sub-sector lost some steam in the month (down 11.6 points to 53.7 points) but kept expanding. Metal products (50.5 points) and printing & recorded media (50.2 points) lifted out of contraction. The textiles & clothing products (48.9 points) and machinery & equipment (44.8 points) sub-sectors both contracted for the month
- Manufacturers indicate continuing uncertainty surrounding the impending Federal Election
- Higher exports and import replacements are lifting activity, assisted by the lower Australian dollar, but strong competition from overseas businesses is curbing growth and putting pressure on selling prices
- Some weak spots in the economy and a lack of capital expenditure are weighing on activity
