Manufacturers “remain notably optimistic” as actual conditions fall short of expectations: ACCI-Westpac quarterly survey

Manufacturing activity is back in contractionary territory, according to the quarterly ACCI-Westpac Survey of Industrial Trends, reflecting “broad-based softness across output, new orders and [the] labour market”.

According to a statement from the Australian Chamber of Commerce and Industry on Tuesday, the Actual Composite result in the survey slipped from 51.5 in Q2 to 48.8 in the most recent result. 

“The tone of these results is broadly consistent with private sector demand tracking a gradual but patchy recovery,” said Westpac Economist Ryan Wells.

“Manufacturers remain notably optimistic even as actual conditions continue to fall short of expectations. The Westpac-ACCI Expected Composite remained firmly in optimistic territory in Q3, easing only slightly to 58.1 from 59.1 in Q2.

“There is a risk that manufacturers’ strong expectations on the outlook are not met in full, particularly if recovery in private sector demand were to remain gradual and uneven.”

The bank’s economist added that a net 10 per cent of respondents anticipated improvement in the six-month general business outlook.

Picture: credit Department of Defence

Further reading

Major survey finds manufacturing sentiment “improving following the gloom” of last two years

Industry pessimism worsens in first quarter: Westpac-ACCI survey