Manufacturing activity has risen for the first time in six months as the lower Australian dollar helps give the sector’s exports a boost.
The Australian Industry Group’s Performance of Manufacturing Index (PMI) rose 4.3 points to 52.3 in May, with the result indicating a expansion in manufacturing activity.
Ai Group chief executive Innes Willox said the lower Australian dollar is helping the manufacturing sector recover some of the lost ground of recent years.
“The flow of benefits for domestic producers from the lower Australian dollar is picking up as exports recover some of the ground lost in recent years,” he said.
You might like
“This was a clear positive for performance in May, together with strong residential construction activity and very low interest rates, and helped propel the sector into expansionary territory for the first time in six months.
“There remains a fine balance, however, and the rapid decline in mining construction, the progressive closure of automotive assembly and subdued local business investment in machinery and equipment continues to weigh on local demand.”
Of the manufacturing sub-sectors, food, beverages and tobacco, printing and recorded media, and wood and paper products all maintained their recent strong performance. Petroleum, coal, chemicals and rubber products returned to expansion for the first time in a year.
– with AAP
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
