The November 2013 Performance of Manufacturing Index figures have been released by the Australian Industry Group and Price Waterhouse Coopers, with a return of 47.7 being recorded. This represents a 5.4 point reduction from October, and brings a two month expansionary period to an end.
Of particular concern are the sharp drops recorded in both production and new orders (-8.4 and -6.9), whilst there is no real pattern to be gleaned from examining manufacturing sub-sectors individually.
Input costs vs. selling prices remains a major issue, with the gap still increasing and continuing the profit squeeze faced by all manufacturers.
From a power transmission industry perspective, we have seen first-hand that the food and beverage sector remains buoyant, which is reflected in the PMI result (65.6). Our orders from food and beverage producers have been strong for a long period, suggesting that this sector will continue to thrive – even in the current conditions, which have obviously softened since the federal election.
For a full breakdown of the PMI information for November, click here… pmi_nov13
