Modest recovery takes hold in print says Printing Industries

The Australian Bureau of Statistics (ABS) has released the National Accounts data showing that the printing industry growth rate was flat in trend terms during the March 2010 quarter resulting in an annual growth rate of 2.3 per cent. At the Australian economy level the growth rate for the quarter was 0.6 per cent in trend terms and 2.7 per cent for the year to March 2010.

Printing Industries outlines that the key drivers of economic growth are government and household expenditure, investment in dwellings and machinery and equipment. Detracting from growth were net exports (exports less imports).

Other key March quarter indicators released recently show printing industry sales grew by 0.5 per cent during the March quarter compared to the previous quarter. March quarter sales were also 0.7 per cent higher compared to the same period a year earlier.

As a result of the modest recovery in sales, the year to March outcome was 11.2 per cent lower than the corresponding period a year earlier implying that printing industry sales have yet to rebound to the level that they were a year ago.

Total printing industry sales during the year to March amounted to $8.3bn. This is well down on the pre-global financial crisis level of $10.4bn reported two years ago.

New capital expenditure in the printing industry was also reported to have declined by 9.2 per cent during the March quarter compared to the December quarter. Despite the quarterly deterioration, the March 2010 quarter outcome was 24.0 per cent higher than the March 2009 quarter outcome.

For the year to March, some $497m of new capital expenditure investment took place in the printing industry representing an increase of 38.8 per cent on the previous period’s outcome.

Commenting on the results, Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries says while economic growth was picking up at the Australian economy level, the rate of growth had slowed at the printing industry level.

He says, “The March quarter confirms that at best growth was flat in the printing industry. This is consistent with our internal research showing industry activity levels deteriorated during the quarter.

“The growth data combined with the sales data confirms that the printing industry is still well below the level it was at two years ago when the Global Financial Crisis started to impact.”

Tchamkertenian adds that the Reserve Bank of Australia decision to keep official interest rates on hold for June was the correct decision given the sluggish growth data as well as the uncertain global economic environment.

 

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter

Leave a comment:

Your email address will not be published. All fields are required

Advertisement

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.
Advertisement