The Australian Industry Group’s Performance of Manufacturing Index released this morning shows the industry returning to overall expansion, but highlights a widening gap in performance between growing and other sectors within Australian manufacturing.
The overall result of 51.3 was an increase of 1.9 points from June’s result. A result above 50 indicates expansion. June was the first overall sub-50 result in 33 months.
The Ai Group’s monthly survey revealed three of six sectors expanding, and three contracting. A summary notes that, “The metal products sector and the small ‘TCF, paper & printing products’ sector reported their weakest conditions since 2013.”
Four of seven activity indices were above 50, with exports increasing 1.5 points to 54.6, “due to strong overseas demand for Australian consumable manufacturing products such as food, beverages, pharmaceuticals, vitamins and cosmetics.”
Both sales and production – 42.7 and 48.3 – shrunk during the month, indicating weak local demand for locally-made products.
Read the full results here.