Growth in food and beverage has buoyed the broader Australian manufacturing industry in September and reversed a sharp drop in August.
The food and beverages sub-sector clinched an upswing for the broader manufacturing sector, following an inventory-related slump in the previous month, according to the Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI).
The food & beverages sub-sector was up 4.1 points to 52.8, and the large machinery & equipment sub-sector also moved out of contraction (up 4.6 points to 52.8). Overall, the Australian PMI regained 2.9 points to 49.8 in September, up from its lowest level in over a year.
Ai Group Chief Executive, Innes Willox, said: “The broadly stable result saw growth in sales and production offset by a further drop in employment and a contraction in new orders. Mixed results across the manufacturing sub-sectors underline the fragility of activity within manufacturing and indeed across the broader economy.
“With business investment the major missing ingredient to a more comprehensive lift in domestic activity, there is a clear need for policy action in this area. In considering the Government’s Enterprise Tax Plan, federal parliamentarians should consider the material improvement to the investment outlook that would come from a reduction in the company tax rate, Willox said.”
