17 September 2018
According to the latest figures from Australian Industry Group, Australian Manufacturing is on the cusp of two years of uninterrupted growth. The Group’s performance of manufacturing index climbed 4.7 points to 56.7 in August, indicating an increase in growth across the sector. Anything above 50 points indicates an expansion in activity, with the distance from 50 indicating the strength of any increase or decline.
The index has now been in positive territory for 23 consecutive months – the longest run of recovery or expansion since 2005. But the input price sub-index also jumped 9.3 points to 77.4, the highest result since March 2011, indicating significant growth in manufacturing input costs.
The manufacturing export sub-index also increased by 8.5 points to 58.4, representing a shift into growth from July.
Five of the index’s eight sub-sectors recorded growth in August, including food and beverages, wood and paper products, chemicals, non-metallic minerals, and machinery and equipment.
Not surprisingly, given the continued population increase, food and beverages, the largest manufacturing sub-sector, increased by 0.8 points to 61.7, continuing an expansionary trend which started in 2013.
Last Tuesday, the Victorian government announced that it has struck a deal to expedite the rollout of electricity at new housing developments – Power companies AusNet Services, Jemena and CitiPower, Powercor and United Energy have agreed to a series of commitments to speed up the rollout of power in the areas where they provide electricity.
These solutions will help improve response times and ensure better communications between electricity distribution businesses and the development industry.
In NSW, developers say slow infrastructure rollout has hampered development of up to 81,000 homes.
It is pleasing to see that the Victorian government is taking concrete actions to tackle the bottlenecks that may impede the rapid urban development of the state, thanks to continued population growth. This is expected to create further comparative advantages to Victoria compared to rival NSW.
There’s always exciting news in Victoria’s business community. For a confidential discussion about your next business transition telephone First Choice Business Brokers on 9899-1888.
By Lee Xie (Senior Project Manager)
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DISCLAIMER – Any financial information within this email has been compiled by First Choice Business Brokers to provide broad general information about business opportunities and the state of the market. First Choice Business Brokers makes no representations or warranties in relation to the financial information in this email. For purchasers looking to buy, we strongly recommend that you carry out your own investigation or consult a qualified accountant before making a purchase.