The Australian Chamber-Westpac Survey of Industrial Trends results for Q2 2021 were released earlier
- 63.1 in the June quarter (Q1 was 59.4 & Q4 2020 was 48.7)
A few snippets from WPAC’s commentary to the release:
- With the activity index firmly above 50, this suggests conditions are expanding at a brisk pace.
- output and new orders are rising at the fastest rate since late 2018/early 2019
- rebound is evident across manufacturing
- construction industry continues to pick up
- Equipment investment has also lifted on the Federal Government’s tax initiatives.
- Exports continue to lag the recovery … Fragilities in the global trade network and elevated trade tensions remain a headwind.
- Profit expectations were marked lower … Margins are being squeezed as costs jump, impacted by supply disruptions.
- Respondents indicate that ‘material’ constraints are limiting production on a scale not seen since the 1970s oil shock. Labour availability is also identified as limiting production. Snap lock-downs are another headwind for the sector and the economy more broadly.