Australian manufacturing back in growth for July

The
Australian Industry Group PMI showed the sector growing for the first time in
nine months.

Released
on Friday, the PMI’s overall result was 50.7 for July. Any result above 50
indicates expansion.

However, News Corp notes that – of eight sub-sectors – the only sub-sectors to be in
expansion were food, beverage and tobacco, and wood and paper products.

There
was a slight expansion in new orders, reports the ABC, and the employment
sub-index was also back in growth territory.

The
Ai Group’s chief executive Innes Willox said that tough conditions persisted
for the industry, which was showing resilience but was being hampered by the
resurgence of the Australian dollar.

“The
high currency is maintaining intense pressure on exporters and import-competing
businesses facing weak demand and low prices for locally made products,” said
Willox.

“Further, with wages and input costs continuing to edge higher, there were
very few signs that manufacturers’ margins are recovering sufficiently to
attract much-needed investment into the sector.”