Media Releases May 2018

The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) eased by 0.8 points to 57.5 in May, indicating a 20th month of continuous growth, albeit at a slightly slower rate (readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase).

"Amendments to Victoria’s Crimes Act proposed today by Premier Daniel Andrews to address worker underpayments are unnecessary. There is no need for new State laws in this area. Federal laws already comprehensively address the issue," Innes Willox, Chief Executive of the Australian Industry Group, said today.

"It is a worrying sign of a lack of sensible policy debate that the Senate today appears unlikely to support the remainder of the Government's Enterprise Tax Plan and that its detractors continue to overlook the favourable impacts that passage would have on investment decisions, economic activity and job creation in both large and smaller businesses," Innes Willox, Australian Industry Group Chief Executive, said today.

Yesterday's release of offshore oil and gas exploration blocks by the Victorian Government is a positive step – one of many needed to help secure the State's longer term gas supplies, Australian Industry Group Victorian Head Tim Piper said today.

"Today, the Australian Industry Group released a new Economics Research Paper on Australia's recent experience of slow wages growth and its causes. The paper draws together key data to highlight that in Australia the key causes of slow wages growth are: weak productivity growth, spare labour capacity and weak inflation. Other alleged causes of slow wages growth (such as low levels of union membership, the extent of casual employment, Australia's bargaining laws and migration) are not significant drivers of wages growth. Real wages are best strengthened through improved productivity, the paper highlights," Australian Industry Group Chief Executive, Innes Willox, said today.

"Ai Group welcomes the Government’s response to the Research Infrastructure Roadmap and the Investment Plan.  It is especially pleasing to see the commitment to research.  This is a long term investment in the vital infrastructure and capability necessary for Australia to realise the potential benefits of our transforming economy,” Ai Group Chief Executive, Innes Willox, said today.

The Australian Industry Group's pre-Budget statement released today calls on the Queensland Government to speed up infrastructure roll-outs, get serious about supporting business and future-focussed jobs, and set a clear pathway for the type of economy we want to build over the next 30 years.

"Today's Federal Budget will give business and the community confidence for the future and is cause for optimism. The very significant tax contribution this year from business has created room to move on tax relief, infrastructure and deficit reduction," Mr Innes Willox, Chief Executive of the Australian Industry Group said.

The national construction industry expanded for a 15^th consecutive month in April, with the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) easing slightly by 1.8 points to 55.4 (readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase).

The Australian Industry Group Australian Performance of Services Index (Australian PSI®) fell 1.7 points to 55.2 in April – a 14th consecutive month of positive results despite a slight deceleration of growth compared to March (results above 50 points indicate expansion, with the distance from 50 points indicating the strength of the increase).