Business Economics - Assignment (Sample)
Added on 2021-06-17
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Running Head: BUSINESS ECONOMICSBusiness EconomicsName of the StudentName of the UniversityCourse ID
BUSINESS ECONOMICS1Table of ContentsIntroduction......................................................................................................................................2Article Summary..............................................................................................................................2Article analysis with economic theories..........................................................................................3Recommendation.............................................................................................................................5Conclusion.......................................................................................................................................5References........................................................................................................................................6
BUSINESS ECONOMICS2Introduction Manufacturing in Australia holds an important position in the economy. Food andbeverages, textile, chemical, machinery and equipment, wood and paper products, metals andnon-metal minerals are some of vital sectors of Australian manufacturing. Large scalemanufacturing always has high demand for energy (Toner and Stilwell, 2014). Being highlyenergy intensive, growth of manufacturing is aligned with the energy sector. After years of goodperformance, the sector has now experienced a relatively slow growth rate mainly due to a risingcost of electricity. The paper focuses on recent trend of declining growth in manufacturingfollowing an increasing input cost. Article SummaryThe manufacturing sector of Australia has marked a slow-down in its steady growth ratein the face of an increasing energy cost. In addition to rising energy cost, other two factorscontributing to a decline in manufacturing growth are a relatively high value of Australian dollarcoupled with closure of some firms in automobile sector. The performance of manufacturingsector is indicated by Purchasing Managers Index (PMI). The Index has now reached to 51.1percent recording a decline by 3.1 points. With this, the PMI index has reached to its lowestlevel. In just two months ago, the index stood at 59.8 percent (businessinsider.com.au, 2018). Inthe measure, 50 is taken as a benchmark value. Any value above or below 50 indicate contractionor expansion of the sector. The PMI index though is above 50 but it marks a much slower growththan that in 2016. In the manufacturing sector, the local demand mostly generated from construction sector,defense, agricultural equipment, mining equipment, renewable and other utilities. The
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