Contraction is the order of the day in Australian manufacturing. According to the March Australian Industry Group / PriceWaterhouseCoopers Performance of Manufacturing Index, Australian manufacturing retreated slightly, with a figure of 46.3 (50 denotes stability).
Domestic demand was weak once again, whilst the initial buzz from local manufacturers surrounding the weakening of the Australian dollar has worn off, as the increased price of imports starts to weigh on local pricing.
One thing many respondents noted was a concern about the lack of local business investment and the ongoing effects that this will cause on future manufacturing. This is especially true in light of the overall weakening expected when Australia’s three car manufacturers finish local production.
PMI March 2015 Result
March was back to ‘four and four’ again, with four sub-sectors expanding and four contracting. This has long been the norm, save for a few recent reporting periods where ‘three and five’ crept in.
The constitution of the results was also markedly different from February, with the wood and paper products and printing and recorded media sub-sectors heading back into positive territory, whilst textiles dropped significantly.
- Food, beverages and tobacco (59.4)
- Printing and recorded media (58.6)
- Non-metallic mineral products (57.4)
- Wood and paper products (50.1)
- Petroleum, coal, chemicals and rubber products (35.8)
- Metal products (44.3)
- Machinery and equipment (43.5)
- Textiles, clothing, footwear, furniture and other manufacturing (48.6)
To download a two page précis of the report, click here… PMI March 2015