The Australian manufacturing sector has edged narrowly into overall growth, according November’s Australian Industry Group PMI result.
The seasonally adjusted, survey-based PMI was 50.1 overall, up from October’s 49.4. Any result above 50 indicates growth.
Four of eight sub-sectors were in expansion for the month: food, beverage & tobacco (up 2.4 points to 59.1); wood & paper products (up 2.1 to 61.6); textiles, clothing & footwear (up 7.3 to 54.4); and non-metallic mineral products (up 5.0 to 50.2). This compares positively to the previous month, where two of eight sub-sectors were in growth territory.
It also shows three consecutive months of improving PMI results, with October’s 49.4 up 2.9 points from September’s PMI.
The Ai Group’s chief executive, Innes Willox, said that though the growth was only very slight, the signs of resilience were welcome in conditions that remain difficult.
There were positives, such as the increased demand from residential construction and decreases in both energy costs and the Australian dollar, noted Willox.
“That said, respondents to the Australian PMI noted substantial headwinds with the steep decline in mining investment and the impending closure of Australian automotive assembly stifling business sentiment and the appetite for investment,” said Willox in a statement.
“Businesses also noted that the still-strong Australian dollar continues to support intense import competition.”
Meanwhile, and in news that will be welcomed by many in the industry, the Australian dollar hit a four-and-a-half year-low this morning, dipping to $US 84.49 cents.
Image: http://eng-cs.syr.edu/research/manufacturing-and-engineering-systems