Election uncertainty hurts manufacturing industry in Australia

10:07, September 01, 2010      

Email | Print | Subscribe | Comments | Forum 

The pace of growth in Australia's manufacturing industry slowed in August, with the ambiguity related to the federal election affecting demand in the sector, Australian Industry Group said on Wednesday.

The Performance of Manufacturing Index by the Australian Industry Group and PricewaterhouseCoopers fell 2.7 points to 51.7 last month. That was still above the key 50-point level, indicating expansion.

The index showed new orders and production experienced slower growth and the worst performing sub-sectors were food and beverages, as well as paper, printing and publishing. But strong mining, construction and infrastructure-related activity kept construction materials, basic metals and transport equipment in positive territory.

The Australian Industry Group's chief executive, Heather Ridout said while the August result marks the eighth consecutive month of expansion, manufacturers still face challenges.

"Election uncertainty, together with intense import competition and other ongoing impacts of a strong Australian dollar, is generating headwinds for manufacturers," Ridout told The Australian newspaper on Wednesday.

"Manufacturers have enjoyed a gradual expansion since the start of the year and although August saw a decline in the pace of growth and new orders were flat, there are indications that the pace of recovery could strengthen in the months ahead.

"In particular, the stronger performance of the clothing and footwear and wood products and furniture sub-sectors is encouraging and suggests that consumer demand may be picking up," she said.

PricewaterhouseCoopers global head of industrial manufacturing, Graeme Billings said the pick up in the sector is taking longer to play out than initially forecast.

"The recovery in manufacturing is proving to be somewhat slower than many have expected," Billings told The Australian newspaper.

"In August, political uncertainty detracted from overall performance, adding to the range of challenges confronting both the sector and the broader economy.

"While manufacturing is still recovering, we are not yet seeing the sort of impetus from the private sector that is needed to underwrite aggregate growth at a time of receding public sector demand."

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion