The food, beverages and tobacco sub-sector has reached its 13th month of expansion, according to Australian Industry Group’s Performance of Manufacturing Index.
The sub-sector’s index increased by 0.7 points to 60.5 points in June (three-month moving averages), where an index reading above 50 points indicates that activity is generally expanding; below 50, that it is declining. The distance from 50 is indicative of the strength of the expansion or decline.
Food and beverages exports are continuing to benefit from a lower Australian dollar, while local demand remains solid.
This sub-sector is the single largest manufacturer, accounting for around 25 per cent of all output and employment. It has recorded the strongest and most consistent growth trend among all manufacturing sub-sectors since 2013.
Food and beverages was one of eight manufacturing sub-sectors in the Australian PMI that expanded in June. The other sub-sectors that expanded are: wood and paper (for a fourth month); textiles, clothing, footwear, furniture and other manufacturing; and printing and recorded media.
Overall, The PMI recorded a result of 44.2, down from May’s 52.3. The previous result was a break from five previous months of negative results.