InDaily InDaily

Support independent Journalism Contribute Subscribe
Support independent journalism

Manufacturing springs into growth


Comments Print article

The lower Australian dollar has helped lift the manufacturing sector into growth for the first time since July.

Australia’s manufacturing sector expanded in November, albeit very slightly, rising 0.7 points to 50.1, according to the Australian Industry Group’s performance of manufacturing index.

A reading above 50 indicates expansion while anything below suggests contraction.

The index has been in contractionary territory since July, when it had a short-lived bounce following an eight-month slump.

The latest bounce was a welcome sign of resilience in the sector, Ai Group chief executive Innes Willox said on Monday.

“The lower dollar, an easing in energy costs, moderate wages growth and relatively low interest rates are all helping to underpin the sector’s performance,”  Willox said.

Strong housing construction activity was also supporting the sector, Willox said.

But there were still “substantial headwinds with the steep decline in mining investment and the impending closure of Australian automotive assembly stifling business sentiment and the appetite for investment,” he said.

“Businesses also noted that the still-strong Australian dollar continues to support intense import competition.”

Four of the eight manufacturing sub-sectors expanded in November, including food and beverages, wood and paper products, textiles, clothing and furniture, and non-metallic mineral products.

Respondents to the survey said business sentiment and appetite for investment remained weak, while the boost from housing construction was being dampened by declining mining investment and car production.

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron


Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article