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Australian PMI®: Manufacturing remains in the black in July
Monday, 02 August 2010 11:31
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 The manufacturing sector entered its third quarter of growth in July on the back of stronger levels of production, new orders and deliveries.
The seasonally adjusted Australian Industry Group - PricewaterhouseCoopers Australian Performance of Manufacturing Index (Australian PMI®) rose 1.5 points to 54.4 in July heralding a seventh straight month of growth in manufacturing (readings above 50 indicate an expansion in activity). The transport equipment, fabricated metals, basic metals and machinery & equipment sub-sectors benefited from stronger demand in the mining and infrastructure sectors in the month. Encouragingly, consumer-related sectors also bounced back in July. However, the high exchange rate continues to affect manufacturers with exports falling in July. Australian Industry Group Chief Executive, Heather Ridout, said: "The recovery in manufacturing continued in July despite the waning impacts of fiscal stimulus and above-normal business interest rates. Private sector demand is slowly re-emerging as a source of growth. While Australia remains the stand-out economy globally, the environment is also patchy and volatile and the world economy faces renewed uncertainty. "Manufacturers will be looking for policies in a post-election environment that will help secure a full recovery in the sector and foster longer-term national productivity growth. Interest rates and fiscal policy need to be set to support further expansion," Mrs Ridout said. PricewaterhouseCoopers Global Head of Industrial Manufacturing, Graeme Billings, said: "Manufacturers continue to regain lost ground and over the coming year need to look for business expansion opportunities by continuing to invest, innovate and upgrade the skills of their workforces. The sector faces important underlying challenges from international competition and the strength of the domestic currency due to the expected continued strength of commodity prices. These challenges call for a combination of long-term business strategies and supportive policy settings." Australian PMI® Key Findings for July:
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