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Australian manufacturing back in growth for July

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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.”

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