Manufacturing enjoying low dollar, rates

Manufacturing conditions are well above where they stood in 2014, helped by low interest rates and a sharp drop in the Australian dollar.

The drop in the Australian dollar has become a game changer for manufacturing, a sector that is showing better job prospects and investment opportunities after spending years in the doldrums.

A new survey shows that although manufacturing growth moderated slightly in the September quarter, results remain well above those of 2014.

The Westpac-Australian Chamber of Commerce and Industry survey of industrial trends showed its composite index easing to 56.7 points from 58.4 in the June quarter, but remaining comfortably above its historical average.

Westpac senior economist Andrew Hanlan said a 25 per cent drop in the Australian dollar in the past two years and low interest rates have been a positive for business.

"The manufacturing sector is on the right side of both of these developments," Mr Hanlan told reporters in Canberra on Thursday.

The report's labour index has also improved over the past two years.

"The survey certainly suggests that a strong jobs performance can continue into 2016," he said.


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Source: AAP


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