Home > Conditions remain difficult for manufacturers: AiG PMI

Conditions remain difficult for manufacturers: AiG PMI

article image

The rate of contraction in the industry has risen slightly, according to the Australian Industry Group’s Performance of Manufacturing Index survey results.

The monthly, seasonally-adjusted PMI showed an overall result of 47.9 for March, down from February’s 48.6.

Any result under 50 indicates contraction, and above it growth.

The strongest sub-sector growth was seen in non-metallic minerals (66.9), followed by coal chemicals and rubber products (62.2), wood and wood paper products (55.6) and food and beverage (53.4).

The Ai Group’s CEO Innes Willox said, "The latest Australian PMI shows that large parts of the economy are failing to gain traction in 2014.

"Subdued local demand and the newly resurgent dollar are weighing heavily against the efforts of manufacturers to rebuild their sales base in Australia and internationally."

Among the AiG’s key findings through the survey were input prices (66.7) and average wages (55.2) both presenting cost difficulties for manufacturers.

Willox said the outlook remained fragile, with the housing recovery weak throughout most of the country and consumer spending on non-food goods muted. 

Newsletter sign-up

The latest products and news delivered to your inbox