New manufacturing orders slump in July

A survey undertaken by National Australia Bank (NAB) in July has revealed that slowing economic growth was broad-based, largely due to market uncertainty surrounding Europe’s and the US debt problems and the continued shrinkage of Australia’s manufacturing industry. The latest manufacturing causality being the 150 workers who will be without jobs as Australian-based food processor SPC Ardmona is set to close its Mooroopna manufacturing plant in Victoria.

According to a NAB statement which accompanied the monthly business survey, Australia’s economy has been growing below its trend rate suggesting a lost in business momentum – a major concern for the local manufacturing industry that could face more plan closures as companies restructure cost spending and relocate offshore.

Recently food-maker Heinz announced that it will cut about 300 jobs as the company consolidates its operations in Queenlands, Victoria and New South Wales and shift its production of sauces, beetroot and some ready meals to the company’s plant in Hastings, New Zealand.

NAB’s business survey also flagged a shrink in manufacturing order bookings.

New orders remained at depressed levels in July with further sharp falls in manufacturing, retail and wholesale, and to a lesser extent, mining orders,  the statement that accompanied the survey results released yesterday reads.