Australia’s manufacturing sector is growing at its fastest pace in almost 30 years, despite the headwinds from Covid-19 outbreaks and associated lockdowns, reports Colin Brinsden, from AAP.
The Australian Industry Group performance of manufacturing index rose a further 1.4 points in June to 63.2, the highest monthly result since the index commenced in 1992.
“The 2020/21 financial year closed on a high note for Australia’s manufacturing sector,†Ai Group chief executive Innes Willox said.
A record pace of expansion was evident across the food and beverages, machinery and equipment, building materials and chemicals sectors.
Production, employment and sales exports were all higher than in May although the rate of acceleration generally eased…
Exports of manufactured goods surged in June and new orders were also higher, pointing to the likelihood of further expansion in the months ahead.
The Australian Bureau of Statistics is preparing to release the latest international trade and job vacancy figures.
Economists expect the trade balance for goods and services to balloon to a record $10.5 billion surplus in May, buoyed by commodity exports, particularly iron ore shipments to China.
The previous record surplus was $9.7bn in March 2020.
Economists are also expecting other data to show house prices rose a further 2% in June, which may leave Australia’s financial regulators a little anxious as demand for home loans continue to build.
Property data analysts CoreLogic will release its well-regarded home value index for June.
In May, its index rose by 2.2% nationally, lifting the annual rate to 10.6%.
The Reserve Bank of Australia has consistently said it is not its role to target house prices, only to ensure lending standards do not deteriorate.
At a meeting of the Council of Financial Regulators last month, the central bank agreed overall lending standards in Australia remained sound.
The council is made up of the RBA, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.
Figures released by the RBA on Wednesday showed housing credit grew by 0.6% in May, the largest rise since June 2017.
However, the growth was largely made up by owner-occupier loans, rather than what are considered riskier investor home loans.
