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Printing industry yields "modest" growth

Printing industry yields "modest" growth
by Daniel Fitzgerald
Dec 17, 2009
Find more like: Printing | Industries | print | industry | abs | statistic | figures | economic | growth

Printing Industries has urged the Reserve Bank of Australia (RBA) not to lift official interest rates, after ABS figures revealed "flat growth" in the printing industry during the September quarter.

The figures show industry growth of 0.1% for the quarter on the back of a 0.5% rise for the Australian economy as a whole. Despite the marginal nature of the increase, it represents the first rise for five quarters, with the printing industry recording an annual decline of 15.2%.

Meanwhile, the total economy reported annual growth of 0.9%, with the September quarter representing the third straight quarter of expansion following the marked contraction of the December 2008 quarter.

Printing Industries national manager for policy and government affairs Hagop Tchamkertenian said: "While it was pleasing to see once again that the Australian economy continued to expand, the fact is that the rate of growth is very modest.

"Today's economic growth data confirms that the economic decline in the printing industry has been arrested while at the Australian economy level growth continues to remain fragile.

"This is why there is a danger that rising interest rates, even from historical lows, could negatively impact on consumer sentiment and spending. Another official interest rate rise during the traditionally quiet March quarter could spell double trouble for the printing and associated industries," he added.

New capital expenditure figures also revealed a 1% decline in the printing industry during the quarter, though this represented a 25.3% improvement compared to last year's corresponding quarter. New capital expenditure for the year until September totaled approximately $399 million, representing a 0.3 % decline on last year's outcome.

Printing industry sales also fell by 1.9% during the September quarter.

The release of the September figures also represents the first time that the publishing industry has not been included in printing industry calculations, under a revised industry classification scheme from the ABS.

"The new industry classification will provide more useful and meaningful data for participants in the printing industry as the distortions that had been caused by the presence of the publishing sector are no longer present," Tchamkertenian said.



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