Drop In Australian Factory Production

Press, Volume C, Issue 29524, 27 May 1961, Page 16

Drop In Australian Factory Production

Widespread reduction in industrial activity caused the A.N.Z. Bank all-group index of Australian factory production for January to fall 2 per cent, below the level of the same month last year, the bank reports. The reduced level of output in January represents a reversal of the strong growth rate in 1960. The size and scope of the reductions varied widely in the industrial groupings of the index. However, some industrial groupings showed a in production for January this year compared with January last year. Among these was the production of motor vehicles 17 per cent, up, clothing and footwear 12 per cent.! up and electrical apparatus 3 per cent, higher. Fuel and power production rose by 5 per cent.

Biggest reduction was a drop of 34 per cent, in the production of structural metals, while electric household appliances fell 15 per cent., food and furniture and furnishings 10 per cen-t., total non-durable goods and basic metals both 8 per cent. Timber and board production fell 7 per cent., textiles 5 per cent., total durable goods 4 per cent, building fittings 2 per cent., industrial and agricultural machinery and tobacco both 1 per cent. Motor Vehicles

The bank says that the increased output of motor vehicles from January, 1960. to January, 1961, in pari, reflects the expansion of the local industry during 1960. Output in January, 1960, was abnormally low as a result of reduced output by a major producer due to the introduction of a new model during that month. However, production of car. station wagon and utility bodies from wholly or mainly Australian made panels during the seven months to January. 1961, totalled 120,424 against 99.460 in the same period of the previous year. Current movements in the domestic economic indicators do not suggest an immediate reversal of the decline in factory production. However, maintenance of favourable movements in wool and basic commodity prices suggests that there

may be room tor more expansive official policies during the last half of 1961. This prospect is being underwritten by the current recovery of tbe United States economy and the continuing strength of business activity In the United Kingdom and some of Australia's other main overseas markets, the bank adds.