Australia’s manufacturing market is getting a boost from the falling dollar for the third straight month in a row. According to the Australian Industry Group’s Performance of Manufacturing Index (PMI), the PMI from August to September rose from 0.4 to 52.1 points.
The last time this happened in the Australian manufacturing climate was in 2010. The change suggests the lower Australian dollar is stimulating a higher number of local orders and exports.
The Australian dollar has fallen 14 cents since the beginning of the year. AiGroup CEO Innes Willox said the lower Aussie dollar was “good news for an economy searching for sources of growth outside mining”, according to Business Insider.
Despite the fluctuations in the Australian dollar, Setec is well known for its consistency as an original equipment manufacturer. Setec CEO David Bayliss credits the company’s stable prices to the businesses’ natural hedge with overseas partners for currency protection.
“We have some customers where we have not had to change the price in over 10 years and are therefore seen as a very stable supplier who is in control of their currency risks and supplier management,” said Setec CEO, David Bayliss.
“This is especially important in our business as our customers are normally manufacturing companies who can’t afford to be dealing with price changes every month,” he said.
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