In seasonally adjusted terms the printing industry grew by 1.2 per cent during the December 2005 quarter and by 0.9 per cent during the year to December. In trend terms it grew by 1.3 per cent during the quarter and by 2.3 per cent compared to 12 months ago.
The Australian economy by comparison grew by 0.5 per cent in both seasonally adjusted and trend terms during the quarter and by 2.7 per cent during the year to December.
During the December quarter the key drivers of economic activity were business investment, household expenditure and government expenditure. These contributions were offset by negative contributions from private investment in dwellings and net exports.
Profit share remained unchanged at 27.0 per cent of total factor income while import penetration increased from 34.6 per cent of total domestic sales to reach 34.9 per cent, reflecting the deteriorating trade position.
On trend basis NSW, Victoria, Queensland, WA, and the ACT all made positive contributions to economic growth. WA recorded the strongest growth at 2.8 per cent followed by the ACT and Queensland at 2.1 per cent and 1.9 per cent respectively.
Printing Industries industry and commercial policy manager Hagop Tchamkertenian, says the figures presented further confirmation that the printing industry was progressed through an expansionary economic phase during the second half of 2005.
“The December quarter results come on the heels of another set of mixed results on sales and company profits released 2 days ago,” he says.
“While industry sales were reported to have improved on a trend basis by 1.5 per cent during the December 2005 quarter and by 2.4 per cent during the year to December, printing industry profits before tax on trend basis were reported to have declined by 12.7 per cent and by 14.6 per cent for the same periods.
“With sales expanding and pre-tax profits declining the explanation for this development is either that cost pressures increased during the most recent quarter and/or industry participants were engaged in rigorous price competition.”
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