19 June 2015
The outlook for Australia's manufacturing sector is looking brighter
The outlook for Australia’s manufacturing sector is looking brighter with the latest ACCI-Westpac survey of industrial trends composite index rising 2.2 points to 58.4 in the June quarter.
The increase, the third consecutive quarterly gain, leaves the index substantially above its historic average of 49.
According to Westpac, the “result builds on the positive tone in the previous two quarters, suggesting that the improvement which emerged in late 2013 has resumed”.
“That is after a mid-year lull in 2014 associated with a tough Federal budget. Manufacturing is benefitting from rising home building activity and some improvement in service sector investment, boosted by lower interest rates. The small business package in the Federal budget is also a plus.”
The improved quarterly reading was primarily driven by improved sentiment towards new orders, output, profits and overtime worked.