Manufacturing continues upward journey

Manufacturing continues upward journeyThe manufacturing sector continued its upward journey for the fourth month in a row in November but still there are waves of uncertainties in the market on accounts of patchy recovery.

The Australian Performance of Manufacturing Index (PMI) was reported at 51.2 points due to less than expected growth of orders and decline in inventories. The production sub-index stood at 54.0 in November and employment index surged 9.1 points to 53.7. Ms Heather Ridout, the Chief Executive of Ai Group said that more efforts are required to push growth of PMI.

She added, "The modest growth in activity in November underlines the tentative nature of the recovery." Manufactures are reeling under pressure and not much optimistic of sudden change in financial conditions despite reporting rise in orders in recent months. The strength of the Australian dollar has been further stopping fast economic recovery in the country and building unnecessary pressure.

Asking for more efforts to achieve stability, Graeme Billings, PricewaterhouseCoopers Global Head of Industrial Manufacturing, added, "The lift in growth in wages and input costs in November, at the same time as selling prices continue to fall, will require a renewed focus on cost management and continued emphasis on lifting productivity."