Latest news with #AustralianIndustryIndex
Fibre2Fashion
07-08-2025
- Business
- Fibre2Fashion
Australian industry rebounds, manufacturing stalls in July: Ai Group
The July Australian Industry Index has revealed a sustained recovery in industrial sectors since late 2024, except for manufacturing. According to the monthly survey of business activity, manufacturing continues to contract while other parts of the industrial economy show steady improvement. Manufacturers reported deteriorating business conditions, citing demand-side trade disruptions and escalating energy costs as primary concerns. The Australian Industry Group (Ai Group) noted that the sector has missed out on the broader industrial rebound. "Manufacturing has been left behind from the recovery in Australia's industrial sectors since the start of this year," said Innes Willox, chief executive of the national employer association, Australian Industry Group. The July Australian Industry Index shows a broad industrial recovery since late 2024, but manufacturing continues to weaken amid trade disruptions and rising energy costs. Ai Group's Innes Willox highlighted the sector's struggles, urging reform on energy, resilience and productivity at Treasurer Jim Chalmers' Roundtable to safeguard economic stability. Willox highlighted that industrial gas prices have surged by 48 per cent since 2019, eroding Australia's long-standing energy cost advantage. This has contributed to a wave of plant closures and broader structural challenges for the sector. 'Treasurer Jim Chalmers' Roundtable this month can begin a clear reform path around the issues of energy, resilience and productivity. Given its centrality to our economic success, the issues impacting manufacturing in turn impact the entire economy,' Willox said in a release. Fibre2Fashion News Desk (HU)
Fibre2Fashion
05-07-2025
- Business
- Fibre2Fashion
Australian manufacturing performance continues to drop: Ai Group
The seasonally-adjusted Australian Industry Index fell slightly by 1.8 points to minus 11.9 in June. The index has indicated contraction for the last 36 months. Supply side factors eased as input costs and average wages declined, pointing to continued softening of inflationary pressures, according to The Australian Industry (Ai) Group, which released the index. Demand side weakness continued, as new orders dropped while sales remain subdued, with manufacturers particularly affected. The seasonally-adjusted Australian Industry Index fell slightly by 1.8 points to minus 11.9 in June. The index has indicated contraction for the last 36 months. Demand side weakness continued, as new orders dropped while sales remain subdued, with manufacturers particularly affected. Manufacturing performance continues to decline despite the broader recovery in industrial sectors. The contraction in sales activity eased slightly to minus 15.6 in June. Since reaching a recent trough at the start of 2024, the trend has shown gradual signs of recovery. Employment improved by 6.6 points to be broadly stable at minus 1.9. This is the first time the index has approached neutral since March 2024. The steady recovery evident in trend data for sales and employment points to improving conditions for the industrial sectors, the Ai Group said in a release. Manufacturing continued to contract despite the broader recovery in industrial sectors, with the purchasing managers' index (PMI) declining to minus 29.3. In trend terms, manufacturing performance continues to slide. Sales of manufacturers were affected by weather, rising costs and trade uncertainty that weakened buyer confidence; in response discounts and flexible payments were employed to boost demand. Capacity utilisation in Australian industry moved slightly upwards to 77.9 per cent in June. Some respondents indicated that increased new orders lifted capacity utilisation and it is likely that capacity utilisation will increase in the coming months. Despite some easing, capacity utilisation remained constrained due to skilled labour shortages, rising living costs and growing competition. Larger contracts are helping sustain operations, but skilled labour shortages and retail sector weakness continue to pose challenges for some respondents, it noted. The new orders index edged down slightly, landing at minus 13.8, a similar rate to the previous month. Since mid-2024, the indicator has shown a gradual trend of improvement. Input volumes fell by 8.9 points in June to minus 11.7, reversing May's gains and matching earlier lows. Some respondents noted signs of enquiries picking up, though overall demand remained soft and reduced orders reflected a cautious outlook for customer spending in June. Market conditions remain strained as global volatility, regulatory changes and competition from imports continue to disrupt supply chains and curtail orders. Pricing indicators showed mixed results in June. The sales price indicator increased to 5.5, while the input prices indicator decreased to 36.5. The gap between sales prices and input costs improved by narrowing to 31.0 in June. However, the wide gap continues to point to margin pressures. The wages indicator remained stable at 36.8, and it has been steady in trend terms since late 2024. Pricing remains under pressure from geopolitical uncertainty, weak local demand, import competition and climate-related economic impacts. Fibre2Fashion News Desk (DS)
Fibre2Fashion
10-05-2025
- Business
- Fibre2Fashion
Australia's manufacturing contraction eases in April: Ai Group
The Ai Group Australian Industry Index showed a slight improvement in April 2025, rising by 5.1 points to -15.0 (seasonally adjusted), though the index has remained in contraction for thirty-four consecutive months. Activity indicators painted a mixed picture. The activity/sales sub-index rose by 7.1 points to -18.3, while employment worsened, falling 5.8 points to -18.2 — a reflection of persistent labour shortages and pre-election business caution. Respondents cited continued cost-of-living pressures and labour market tightness as key challenges. Leading indicators, including new orders and input volumes, remained unchanged at -20.7 and -13.1 respectively, reflecting ongoing uncertainty in the domestic and global economic environment. Businesses reported holding off on investment and order placements amid fluctuating demand and geopolitical instability. Inflationary pressures appeared to ease further. While the sales price indicator dropped to -6.3, signalling weakened pricing power, input prices and wages saw marginal adjustments, a release from the Ai Group said. The wage price indicator rose 7.1 points to 39.8 but has remained largely steady since mid-2024. Businesses remain concerned about future price volatility stemming from US trade tensions and currency swings. Australia's broader manufacturing sector (PMI) also saw a softer contraction in April, with the index rising by 3.7 points. However, upstream manufacturing faced headwinds, as the chemicals sub-sector fell to -9.8—its lowest level since January—due to global trade friction and rising material costs. In downstream manufacturing, machinery and equipment fell sharply to -37.3, the lowest level since February 2021, amid supply chain bottlenecks and falling capital expenditure. Food, beverages and textiles saw the only improvement, rising 10.6 points to -16.6, though exports were hindered by high freight costs and tariff-related trade instability. Capacity utilisation edged down to 78.4 per cent, its lowest since mid-2020, as businesses grappled with equipment constraints, input shortages, and election-driven uncertainty. Australia's manufacturing sector (PMI) saw a softer contraction in April, rising by 3.7 points. However, upstream manufacturing remained under pressure as the chemicals sub-sector fell to -9.8, its lowest since January, impacted by global trade tensions and higher material costs. Broader industrial recovery remains fragile amid ongoing economic uncertainties. Fibre2Fashion News Desk (HU)
