Manufacturing in Australia has continued its unbeaten run of run of growth, with October marking 25 consecutive months of expansion according to the Australian Industry Group Performance of Manufacturing Index.
The headline figure of 58.3 points (with 50 being a stable result) is slightly down from September, although still continues the upward trend of recent results.
Growth in Seven out of Eight Sectors
The Performance of Manufacturing Index covers eight specific sectors:
- Machinery and equipment
- Metal products
- Petroleum, coal and chemicals
- Non-metallic minerals
- Textile, clothing, footwear, furniture & other manufacturing
- Wood and paper
- Printing and recorded media
The only sector to record a retraction in October was Machinery and equipment, recording a 49.4. All others were strong, with Food and beverages, Printing and Recorded Media, Wood and Paper all above 60 points, with Non-metallic minerals nearly posting a 90.
Energy prices are listed as a major concern from manufacturers, which has been the case throughout the Australian manufacturing resurgence.
Input costs as a result of the relatively soft Australian dollar have also increased pressure on overall prices, with margins being affected.
Strong growth remains in the food and beverages sector, with continued demand from Asia for quality local produce. This sector has been strong since 2013 and does not look to be subsiding any time soon.