- all the activity indexes remained below 50 in December
Australian Industry Group Chief Executive, Innes Willox said:
“2013 ended without much cheer for many Australian manufacturers with the gains recorded in September and October reversed in the closing months of the year. New orders and employment fell further behind in December casting doubt over whether the start of 2014 will usher in a more positive outlook for manufacturing activity. The sector, and indeed the broader economy, remains stuck behind the eight ball and manufacturing in particular is, as yet, in no position to assume a role in generating alternative sources of growth as the mining boom fades. Notwithstanding that interest rates are at low levels and that the Australian dollar appears to be on its way back down to more realistic levels, conditions in the sector remain very tough.
“This latest snapshot is yet another reminder of the urgency for Australia to put itself on a more balanced and diversified growth path. Manufacturing and related industries have a critical part to play in this strategy”
- Food and beverages was the only major sub-sector to expand – 55.8.
- Production levels improved to 48.6.
- Manufacturing exports remain very low with a December reading of 30.1.
- Wages grew at a slower pace (54.8).
The AUD is unchanged after the data release, it has fallen from Tuesday’s closing levels in US trading this morning, the weaker than expected Chinese manufacturing PMI being cited.
