Each month, The Australian Industry Group conducts a survey of businesses working in the manufacturing, services and construction industries to see how their sector of the market is performing. This data is vital for those who are interested in the future of business in this country, as downturns or periods of growth in one sector can have far-reaching implications for others down the line.
Simply put, the survey polls businesses to see if they’re manufacturing more or less than they were in the previous survey period. A number above 50 indicates that manufacturers are making more goods, while a number below 50 shows a reduction of products made in that sector. The PMI results covering July 2018 are in and they have a lot to say.
The PMI In Action
Overall, the local manufacturing industry is still growing, albeit at a slower rate than in previous months. July 2018 saw it fall by 5.4 points to 52 points, which still continues a run of growth from March of this year.
Many of the individual manufacturing sectors expanded in July 2018, including Food & Beverages, Non-metallic Minerals and Machinery & Equipment. New orders continued to stay positive, indicating that future months will display positive results in the markets.
Growth in general infrastructure projects place increasing demand on the manufacturing of new products, offset slightly by increased wage costs that came into effect at the start of the new financial year. In particular, new orders for transport vehicles increased significantly in New South Wales in direct response to the surge in infrastructure projects being developed in that region.
Have Your Say
Businesses are encouraged to take part in the PMI survey to get an even more accurate picture of the manufacturing landscape in Australia. It’s free to do so and takes less than five minutes to complete.
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