Australia’s manufacturing export growth continues to slump to new record lows in March an Australian Industry Group report showed today. Following on from record lows in February, the Performance of Manufacturing Index (PMI) exports showed a decline of 5.6 points in March. The figure is down to 41.0, indicating dramatic negative growth in manufacturing exports, with figures below 50 reflecting negative growth.
The marginal overall improvement in the PMI in March still has the figure well below its peak late last year and the figure from the same time in 2004. The new orders index declined, with growth in finished stocks and deliveries also weakening in the sector. Employment and production recorded growth well below the corresponding period in 2004.
It is clear that Australia’s economic growth is being challenged by local capacity constraints across the manufacturing sector. Epidemic skills shortages in the industry continue to impact on the ability of many companies to improve productivity.
What is inherently dire for the industry is that the Howard Government has made no real attempts to address the key factors undermining Australia’s manufacturing capability – particularly the current skill shortages crisis.
Federal Treasurer Peter Costello admitted in a speech last night to the ‘Sustaining Prosperity Conference’ in Melbourne that the damaging skills crisis was only going to get worse: ‘Like now but significantly worse.’
With this Government’s neglect it is difficult to see any way out of low gear for manufacturing growth in Australia and little hope of addressing Australia’s worst ever trade performance under the Howard Government.
Contact: Taryn Langdon 0147 148 059 or 02 6277 3334
