Australian downturn

There don't seem to be any recent PMI figures for New Zealand - is that because we don't have much in the way of manufacture any more. We rely on the Rugby World Cup, earthquakes and (now) "the Hobbit'

Australia Manufacturing Contracts Further In November

NASDAQ,

3 December, 2012

SYDNEY--A key gauge of manufacturing activity in Australia fell in November, the latest sign a mining slowdown is weighing on the country's resources-dominated economy.

The Australian Industry Group Performance of Manufacturing Index fell 1.6 points in November to 43.6 from a month earlier. A PMI reading above 50 indicates an expansion in manufacturing activity from the previous month, whereas a reading below indicates contraction.

The weak reading comes a day ahead of the Reserve Bank of Australia's final policy setting meeting of the year, when the central bank is widely expected to cut its benchmark lending rate by a quarter of a percentage point to 3.0%. The RBA has so far lowered rates by 1.50 percentage points since November last year.

The contraction in manufacturing activity in November was widespread, with steep declines in the petroleum, coal products, construction materials and metals sectors. Only the food and beverages sector expanded during the month.

"The key concerns for manufacturers remain the high dollar, rising energy costs and weak demand in export and local markets," said Innes Willox, chief executive of the Australian Industry Group.

The Australian dollar has continued to trade above parity with the U.S. greenback through most of the year despite a sharp fall in commodity prices. Trading Monday at US$1.0428, the currency is blamed by some policy makers for eroding the competitiveness of Australian exports and manufacturers.

"These factors are exacerbated by the ongoing slump in the residential and commercial construction sectors and have not been offset by the reduction in interest rates to date," Mr. Willox said.

Increased pressure to cut peak electricity use

CabooltureNews,

30 November, 2012

THE growing pressure on Australians to cut their peak power use has been given a boost, with the Australian Energy Market Commission recommending consumers change their electricity usage.

After an 18-month investigation into the way the national electricity market operates and recommending changes, the AEMC released its final Power of Choice review report on Friday.

The commission recommended major changes to the National Electricity Rules and government programs which give consumers information about prices, and what options people have to change their power use.

It could also lead to higher prices during times of peak demand, such as during summer, in line with recent recommendations in the Federal Government's energy white paper.

The report will now go to the Standing Council of Energy and Resources, for state and federal ministers to decide what action will be taken