The release of official data (including wide format) has confirmed Printing Industries internal research from some six weeks ago that the June 2010 quarter was a 'patchy' quarter.
During the past week the Australian Bureau of Statistics (ABS) released its June 2010 quarter data covering key economic indicators such as capital expenditure, sales, profits and economic growth.
New capital expenditure in the printing industry was reported to have declined by 10.3 per cent during the June quarter compared to the previous quarter. Compared to the same quarter a year earlier the deterioration was 7.9 per cent. During the 12 months to June 2010 total new capital expenditure outlay in the printing industry stood at $488 million representing an improvement of 30.1 per cent on the same 12 month period a year earlier.
Printing industry sales fell marginally during the June quarter compared to the previous quarter. Despite the reported fall, sales were 2.0 per cent higher than the corresponding June quarter a year earlier. For the year to June total industry sales amounted to almost $8.4 billion which represents a 5.1 per cent deterioration on the outcome of the previous year.
Pre-tax profits were also reported to have fallen during the June quarter by 2.3 per cent on the previous quarter's outcome but when compared to the same period a year, the reported outcome is significantly higher.
The final key set of economic data released by the ABS relates to economic growth with the ABS figures showing that in trend terms the printing industry expanded by a modest 0.3 per cent during the June quarter and by 3.6 per cent during the year to June.
For the financial year 2009-2010 printing industry gross value added stood at $3,480 million which is 4.1 per cent lower that the previous financial year's outcome, and 20.9 per cent lower than the reported outcome of two years ago.
The Australian economy also expanded during the June quarter by 0.9 per cent in trend terms and by 3.2 per cent during the year to June. Government and household expenditure contributed to growth while investment in machinery and equipment detracted from growth.
At the industry level positive contributions to growth were made by the mining, manufacturing, construction, transport, postal and warehousing, financial and insurance services, and professional, scientific and technical services. Detracting from growth was the agricultural, forestry and fishing sectors.
Growth at state and territory level varied considerably. The ACT reported the highest annual rate of growth at 9.6 per cent followed by Western Australia at 8.7 per cent; Victoria at 6.3 per cent; New South Wales and South Australia each at 5.4 per cent; Tasmania at 3.0 per cent; Northern Territory at 1.9 per cent and Queensland at just 1.6 per cent.
Commenting on the official data Printing Industries National Manager for Policy and Government Affairs, Hagop Tchamkertenian said the sentiment reflected in the official data is in line with that of Printing Industries internal data released approximately six weeks ago.
"When we released the findings of our latest Printing Industry Trends report the most common trend that featured across the main economic indictors was one of deterioration," he said.
"The official data now confirms what we knew and suspected weeks ago that the June quarter was essentially a soft quarter for our industry.
"While the economic growth data shows a modest improvement for the printing industry, the industry continues to operate at a level that is significantly below the reported levels of the pre-global financial crisis (GFC) period.
"The big unknown now for the printing industry is how much of the losses experienced during the recent economic downturn can be realistically recouped. If the economy continues to expand some positive flow-on effects to the printing industry should take place. It is however highly unlikely that industry activity levels will return to the levels experienced during the pre-GFC period."
Mr Tchamkertenian said that many printing businesses were facing some stark business realities characterised by soft order books and rising cost pressures.
