Trailer Magazine

Australian manufacturing gains momentum for 2019

  • Posted on Wednesday 6th, February 2019.

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) recovered by 2.5 points to 52.5 in January 2019.

This indicates that manufacturing conditions turned mildly positive again in January, after a flat result in December 2018 ended 26 months of continuous expansion (readings above 50 points indicate expansion in activity, with the distance from 50 indicating the strength of the increase).

January 2019 saw a mild improvement in sales, new orders, exports and production compared with December for many manufacturers. Conditions remain more favourable for food and beverages manufacturers than those in other sectors, with exports and new orders looking especially promising.

Australian Industry Group chief executive, Innes Willox, said 2019 is clearly bringing a new set of challenges to Australian manufacturing.

“Respondents continue to report problems with energy costs, shortages of specialist skills and fiercely competitive global markets,” he said.

“Locally, we are now also starting to see the effects flowing through into manufacturing of a weaker national construction cycle as well as the legacy of the drought.

“Recent changes in the finance sector are becoming relevant; for example, a number of manufacturers noted that difficulties obtaining customer finance is denting their business-to-business sales of certain types of specialist machinery and equipment,” said Willox.

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