Manufacturing, food & beverage making continue to grow

The Australian Industry Group’s Performance of Manufacturing Index (PMI) inched 0.2 points higher to 55.0 in June, with expansion in the food & beverages sub-sector easing to 56.9 for the month.

The PMI result means Australian manufacturing has now seen nine consecutive months of expansion.

“Sales, exports and production all lifted and growth was widespread across the sector,” said Ai Group chief executive, Innes Willox.

There was higher activity in the metal products; machinery and equipment; petroleum, coal, chemical and rubber products; and non-metallic mineral products sub-sectors augmented the further growth of the large food and beverages sub-sector.

“While a lift in new orders indicates that momentum may continue in the near-term, concerns about the impacts of further rises in energy prices are accumulating like storm clouds over the sector and particularly for more energy-intensive industries,” said Willox.

“With policy uncertainties inhibiting investment in energy and energy-using sectors, it is imperative that sensible and bipartisan resolution be reached as soon as possible.”

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