Australia’s manufacturing sector returned to growth in October though food, the largest sub-sector, dropped slightly according to a key index.
In the index’s second straight monthly improvement, the Australian Industry Group’s Performance of Manufacturing Index for October came in at 50.9, up from 49.8 in September. (results above indicate expansion, while figures under 50 indicate contraction).
Food, beverages and tobacco dropped 2.4 points to a stable 50.4 points.
Ai Group chief executive Innes Willox welcomed the result, saying that it was a positive, even though growth was only achieved through the “narrowest of margins” in October.
“… [G]rowth remains relatively narrowly based, with contractions in the important metal products and non-metallic minerals sub-sectors broadly offsetting expansions in the machinery & equipment and petroleum & chemicals sub-sectors while the largest manufacturing sub-sector – food & beverages – trod water in October,” said Willox in a statement.
“The manufacturing sector would welcome the boost to investment that a reduction in the company tax rate would provide – even if it was limited to businesses with annual turnovers of less than $50 million.”