18 Jun 2019 | Archive
The Australian Chamber of Commerce and Industry – Westpac Survey of Industrial Trends for the June quarter 2019 released today, shows a slowing in manufacturing business growth but a rise in sentiment post-election.
“The Westpac-AusChamber Actual Composite Index declined in June 2019 to 61.5, down from 61.8 in March, to be a clear notch below the 63.5 in mid-2018,” Westpac Senior Economist, Andrew Hanlan, said.
“This confirms that the loss of momentum from mid-2018 persisted over the first half of 2019.
“While not a weak reading, conditions over the first half of 2019 were the softest since late 2016.
“Manufacturing new orders are rising, but at a slower pace than evident over 2017 and 2018, the survey reports.
“The manufacturing sector is being impacted by cross-currents. The housing downturn and spillovers from the drought are clear negatives. Countering this is the boost from the lower Australian dollar and from the upswing in public infrastructure investment.
“Exports are maintaining a modest uptrend, which is expected to continue, with the lower Australian dollar providing some support at a time of softer global conditions.
“The survey, which was conducted after the Federal election, reveals that optimism among manufacturing firms has rebounded after faltering earlier in the year, although it remains below the levels prevailing in 2017.
“In June, a net 28% of firms expect the general business environment to improve over the next six months, up from 12% in March.
“Respondents expect new orders to strengthen in the coming three months, rising from a net 25% to a net 36%. In part, this likely reflects an anticipated boost from RBA rate cuts and cuts to income tax.
“Investment intentions of firms have rebounded after a soft start to 2019, once clouded by uncertainty ahead of the Federal election. A net 21% of firms plan to increase equipment spending over the next twelve months, up from 12% in March, to be back in line with the readings evident in 2018.”
Australian Chamber CEO, James Pearson, said:
“The survey indicated there had been some improvements, with rising output, growth in new orders and the backlog of orders, and an increase in overtime for workers. But this was not enough to stem the fall in the Composite index, which reflects recent signs of a slowing economy and flat employment growth over the past three quarters.
“It all points to the need to strengthen the economy and improve business conditions for the manufacturing sector and business generally.
“It has become even more important that the new Parliament pass the Government’s tax package in its first sitting in July to stimulate consumer spending. We also need to invest in developing skills and we need to reduce energy costs.
“We encourage the Government to work with business to improve productivity, ease cost pressures and build business confidence to invest and create more jobs for the benefit of all Australians.”
There were over 240 respondents to the Australian Chamber-Westpac Survey of Industrial Trends from across the manufacturing sector.
The survey, the longest-running business survey in Australia, dating from 1966, provides a timely update on the manufacturing sector and insights into economy-wide trends.
The survey results are available on the Australian Chamber Website.
The Australian Chamber speaks for over 300,000 businesses employing millions of Australians in every sector of our economy and in every part of our country.
13/09/2019
The Australian Chamber is delighted to announce Bryan Clark, Director of ACCI Trade & International Affairs, has been appointed to the Government’s Deregulation Taskforce, announced...
8/08/2019
The Australian Chamber is calling on the country's political leaders to agree to reform our vital Vocation Education and Training (VET) system, to deliver the skills...
6/08/2019
The Australian Chamber backs the latest call for greater balance in the unfair dismissal system to better support small business owners trying to do the right...
5/08/2019
The Australian Chamber of Commerce and Industry welcomes today’s announcement that the Productivity Commission will focus on streamlining regulation in the resources sector. "The joint announcement...
30/07/2019
By James Pearson, Chief Executive Officer In August 1985 Bob Hawke proclaimed that the Australian government had had enough of “the Building Labourers Federation’s complete...
23/07/2019
The Government has called time on union officials with deep pockets, arrogant attitudes, and combative lawyers thumbing their nose at our laws, our courts and...
22/07/2019
By James Pearson It's the year 2030. China has overtaken the US as the world's largest economy. The fastest growing cities are located in...
18/07/2019
The Australian Chamber of Commerce and Industry (ACCI), Australia’s employer representative to the United Nations’ International Labour Organisation (ILO), says union opposition to proposed legislation...
18/07/2019
Today’s release of a report on Government-funded vocational training by the National Centre for Vocational Education Research (NCVER) showing a further decline in investment, reinforces the...
4/07/2019
The Australian Chamber of Commerce and Industry, Australia’s largest and most representative business network, warmly welcomes the passage of the personal income tax package through the Senate. “The...
4/07/2019
Australia's largest and most representative business network, the Australian Chamber of Commerce and Industry welcomes the Federal Government's reintroduction of the Fair Work (Registered Organisations)...
1/07/2019
Australia’s largest and most representative business network, the Australian Chamber of Commerce and Industry calls on the Parliament to pass the Government’s personal income tax...
1/07/2019
Australian Chamber – Tourism, the peak body of Australia’s tourism organisations welcomes the expansion of the Working Holiday Maker visa program. “The Australian Chamber-Tourism has...
24/06/2019
Australia’s largest and most representative business network, the Australian Chamber of Commerce and Industry, welcomes the Prime Minister’s commitment to review Australia’s Industrial Relations system...
19/06/2019
Australian Chamber – Tourism, the peak body of Australia’s tourism organisations, acknowledges the release of the International Visitors Survey today. The survey shows strong performance for...
11/06/2019
By James Pearson With the final seats being declared in the federal election, the government and opposition frontbench teams in place and parliament set to...
5/06/2019
The Australian Chamber of Commerce and Industry, Australia’s largest and most representative business network, today expressed disappointment at the latest National Accounts figures showing lower...
4/06/2019
The Reserve Bank Board’s decision to lower the cash rate to 1.25% today has been welcomed by Australia’s largest business network, the Australian Chamber of...
3/06/2019
Australia’s largest business network, the Australian Chamber of Commerce and Industry, congratulates the new Labor Shadow Ministry on their appointments and welcomes Federal Opposition Leader Anthony...
30/05/2019
The Australian Chamber of Commerce and Industry, Australia’s largest and most representative business network, is concerned that the 3% rise in minimum wages announced today...