Conditions for manufacturing exporters are very difficult, with the high exchange rate exacerbating weak overseas and domestic markets. Confidence among exporters is dropping rapidly with a slow down of orders out of Australia adding to the weak sentiment from Europe.
Figures show that in June export sales were down 0.7% and domestic sales by 5.3% on those reported in July 2011. We are beginning to see job losses across a wide range of industries. With world markets continuing to deteriorate, Australia showing signs that the China boom cannot fill the gap, exchange rates with the USA and Europe prohibitively high, and basically demand in China drying up, conditions do not look too promising.
As a result a number of our manufacuring exporters are having to cut staff numbers in order to see them survive this difficult period.