Manufacturing sector shows signs of life but cost pressures remain

Australian manufacturers have notched up a better few months for new orders and tax cuts should help household incomes recover and underpin healthier demand for goods.

Demand has rebounded in the June quarter, with a net 20% of firms recording a rise in new orders.

This was after new orders stalled in the second half of 2023 and then declined at the start of this year as retailers struggled to move stock due to higher interest rates and price pressures weighing on consumers.

Westpac economist Ryan Wells said conditions in the manufacturing survey were improving, as highlighted in the quarterly survey from the major bank and the Australian Chamber of Commerce and Industry.