Manufacturing expands despite rising costs
The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) rose by 1.6 points to 54.0 in June, indicating mild growth as the index recorded a fifth consecutive month in expansion (readings above 50 points indicate expansion in activity, with higher results indicating a faster rate of expansion).
Innes Willox, chief executive of Ai Group the national employer association said, “Although input price pressures continued to accumulate, Australia’s manufacturing sector expanded again in June with solid increases in production and new orders and a slight lift in employment. While export sales were up, domestic sales fell reflecting the decline in consumer and business confidence in the face of concerns about inflation, interest rates and asset values. Selling prices were higher in June but by a smaller amount than input costs as less robust demand inhibited the ability of manufacturers to fully recover their higher costs in the market. Performance was mixed across the manufacturing sector with the machinery & equipment; chemical products; and building products sectors the major contributors to expansion while performance slipped in the food & beverages sector and fell sharply in the metal products sector, which reported a fall in new orders and difficulties securing inputs and labour,” Willox said.