Australia’s manufacturing sector “reached for recovery” last month, according to the latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI).
While exports are low and employment is down, there was an increase in the amount of orders, production and deliveries, which should give business owners in this sector something to smile about.
This is the first time production has shown any signs of growth in the past two and a half years, according to Innes Willox, chief executive officer of the Australian Industry Group.
He added the rise in production was also a welcome continuation of the recovery noted in September.
Overall, the Australian PMI increased by 1.5 points to reach 53.2. According to the Australian Industry Group, any number above 50 indicates the manufacturing sector is going through a period of expansion, and the further above 50 the better.
The highest-performing areas in the manufacturing industry during the three months leading up to October were food, beverages and tobacco. The lowest were metal products, machinery and equipment, and various textiles.
“While there are certainly encouraging signs, it is too early to call a recovery with a good share of the gains representing a catch-up following a very slow mid-year period,” said Mr Willox.
He explained the domestic currency still presents a “major barrier” to export growth.
It’s evident from the Australian PMI that manufacturing is a risky business.
You may not be able to protect yourself against fluctuations in the industry, but you can make sure you’re prepared if and when a loss-causing event occurs in your business by purchasing manufacturing insurance.
MGA Insurance Brokers has been helping people across the country organise this specialist brand of business insurance for many years.
We work in conjunction with the South East Melbourne Manufacturers Alliance (SEMMA) and can provide you with access to policies from both national and international insurance markets.