Manufacturing on long, steady climb

AUSTRALIA’S manufacturing sector has experienced its longest run of growth in 13 years after notching up another month of expansion.

The Australian Industry Group’s performance of manufacturing index posted its 16th consecutive month of expansion last month, rising 2.5 points to 58.7 points.

The reading was comfort- ably above the 50-point level, meaning activity is picking up.

“Australia’s manufacturing industry enjoyed a strong start to the year and added to the longest manufacturing expansion in more than a decade,” Ai Group chief Innes Willox said yesterday.

Mr Willox said food and beverage producers had led the way, supported by strong showings from businesses in the petroleum, coal and chemi- cals sector, metal products and machinery and equipment sub-sectors.

While all sub-sectors had expanded, Mr Willox said there was a big difference between the rates of growth.

The coal and chemicals sector recorded its highest monthly growth rate in almost a decade while the textiles and clothing sector recorded its lowest monthly growth rate for the same period, he said. Production and sales volumes were robust and employment also grew but hefty power costs and strong competition, in part due to a stronger Australian dollar, kept margins tight and restrained wage rises, he said.

“Now is the opportunity for policy makers to reinforce the optimistic start to the year to secure further investment and employment gains in 2018,” Mr Willox said.