Currency drop hasn’t seen big lift in confidence among manufacturers: survey

The latest quarterly survey of industrial trends, released
today, sees mixed sentiment among manufacturers, with a decrease in confidence
over what the next six months hold.

The 214th Australian Chamber of Commerce and Industry – Westpac Survey of Industrial Trends was based on survey responses given between
February 9 and March 9.

It was the sixth straight result that was expansionary overall
(Actual Composite result), “centred on a lift in new orders and output”.

Overall, the year is expected to be a better one for profits
than 2014, with a net 13 per cent of businesses expecting an improvement.

The rapidly declining Australian dollar against the US
currency has not provided a dramatic boost for exports, with only a net positive of
3 per cent of businesses seeing an increase (with 7 per cent expecting an
increase in the next quarter).

However, as AAP reports, the net positive result was 8 per
cent of businesses believing the next six months would be better for
business. This was a steep decline from the previous quarter’s result of a net
positive 27 per cent.

Capacity was, in net balance terms (negative 13 per cent) under-utilised by respondents.

To read the survey’s results, click here.

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