It’s official. We are worse off than Greece – at least when it comes to manufacturing.

Our manufacturing activity rates among the lowest in the world, according to the Australian Industry Group’s (Ai Group) latest Performance of Manufacturing Index, which shrunk for the 26th consecutive month in August.

Australia’s PMI was again below 50, which indicates the sector is in contraction. But the rate of the decline is slowing, with the index rising 4.4 points to 46.4.

Still it was a bleak figure. A comparative figure for Greece shows the troubled nation’s PMI rose to a 44-month high at 48.7.

However, Ai Group chief economist Julie Toth says the Greek figure, like most eurozone countries, reflects a recovery after a sharp fall, which Australia and other Asian countries did not have.

While there is a gulf between Australia’s economy and that of the Mediterranean nation, Bank of America chief economist Saul Eslake says there is some narrow comparison that can be drawn.

”Both of us have fairly small manufacturing sectors,” Eslake says. ”The PMIs for both Greece and Australia are signalling growth is below trend, which is probably right.”

Global manufacturing activity was up 0.9 points 51.7, fuelled mainly from a return to growth in China (50.1), and faster expansions in Japan (52.2) and Britain (57.2). Manufacturing output in Britain surged to its highest since 1994, while Japan’s hit a 2½-year high.

In the world’s biggest economy, the US PMI eased 0.6 points to 51.1. Although Markit chief economist Chris Williamson says the US figure was disappointing, he says ”a more encouraging picture emerges if we look at the details”. ”In particular, inflows of new orders – a useful guide to future production – are growing at the fastest rate for seven months,” he says.

While Eslake questions the traditional interpretation of PMI figures, saying a reading below 50 does not necessarily mean the sector is in decline, he says our manufacturers are struggling – and you don’t need PMI figures to tell you that.

Our manufacturing sector has been declining as a share of GDP for the best part of 40 years, and Eslake does not expect that to change soon. This is largely because Australia does not have big domestic and export markets to achieve the economies of scale needed to build a strong manufacturing sector. Eslake says while the ”global centre of gravity is moving towards us”, with the emergence of China and India, our manufacturers will continue to struggle.

Why? Because ”Berlin is closer to Beijing than Brisbane, Shanghai is closer to Stockholm than Sydney and Mumbai is closer to Madrid than it is to Melbourne. So we are still at a disadvantage.

”We are still such a long way away from our markets, and transport costs and time counts when you are talking about manufacturing.”

But Toth says the Ai Group expects Australia’s manufacturing activity to return to expansion before the end of the year, despite exports still being ”extremely weak”.

She says the benefits of a lower Australian dollar are already filtering into business and should bolster growth. The dollar has fallen about 15 per cent since April after trading above parity with the US dollar for most of the past two years.

”There is a direct relationship between the data that we collect and what’s been happening with the Aussie dollar, and we are already seeing the PMI improve, even though it hasn’t actually hit 50 yet,” Toth says.

”There’s been a pick-up in local orders, and hopefully there will be in exports. Production is increasing.” However she says that is not translating to an increase in jobs. ABS figures show manufacturing employment has tumbled 12.5 per cent in the past five years.

”I think that’s the productivity story,” Toth says. ”Businesses have got spare capacity, they have got spare hours in there, so they are able to increase their output without hiring more people or replacing those that they’ve had to shed.”

Activity rose in only three of the eight manufacturing sub-sectors in August, with food beverage and tobacco products recording the strongest reading.

The petroleum, coal, chemical and rubber sub-sectors expanded, while printing and recorded materials also had a gain. Metal products continues to be the weakest sector.

Toth says despite the weak figures, manufacturing continues to be the fourth biggest sector by output and employment, behind mining, financial services and construction.

In the September 7 federal election for the 150 House of Representatives and the 40 Senate seat vacancies throughout Australia, 18 Greek and Cypriot Australian candidates from all political parties are asking for the vote of the Australian people.

In the event Arthur Sinodinos, Liberal Senator from NSW, is re-elected, he is expected to take over the Ministry of Finance.

Indeed, if the Coalition dominates it is very likely for Tony Abbott’s new government to have two ministers of Greek descent.

The Labor party seems to be really concerned about losing seats in South Australia, and one of those seats is that of Steve Georganas, Labor MP for Hindmarsh in Adelaide.

Georganas is competing with another Greek-Australian Hindmarsh candidate, George Melisourgos, from the Palmer United Party.

Among others, in Saturday’s elections those expected to be re-elected are Maria Vamvakinou, Labor MP for Calwell in Melbourne, Nick Xenophon, the Independent Senator in SA. as well as Sophie Mirabella, Liberal MP for the regional Victorian seat of Indi.

Greek Australian candidates at a glance

Labor’s Maria Vamvakinou.

When Australians go to the polls tomorrow they will have over 1700 candidates from more than 50 parties to choose from.
They include far-right fringe groups and everything from the Animal Justice Party and Smokers’ Rights to The No Carbon Tax Climate Sceptics. Greek Australian candidates reflect that spectrum of political thought.

Labor

Steve Georganas
Hindmarsh
House of Representatives
Georganas won Hindmarsh by a margin of 6.1 per cent in 2010. A strong swing against Labor could see the much respected sitting member in trouble.

Maria Vamvakinou
Calwell
House of Representatives
With a 20 per cent margin at the 2010 election this is one of Victoria’s safest seats for Labor. Unless a tsunami of disaffection with Labor is felt in her electorate Vamvakinou is likely to be heading back to Canberra.

Peter Freeleagus
Capricornia
The most recent polls showed Capricornia as one of at least four Labor-held seats that could fall to the Coalition in Queensland.

Liberal

Sophie Mirabella
Indi
House of Representatives
Destined for ministerial office if Tony Abbott gets into the Lodge, Mirabella must first hold her seat. She won by a margin of 9 per cent last time around but up against a strong Independent this time it could be tight.

Arthur Sinodinos
NSW
Senate
Preferences of right-of-centre parties directed to One Nation leader Pauline Hanson could potentially upset the plans of John Howard’s former adviser. If returned he will become finance minister in a Coalition government.

George Souris
Batman
House of Representatives
Formerly held by Martin Ferguson, Batman has been Labor for all but two terms since 1910. Souris is hoping to improve on the third place he achieved at the 2010 election.

Independent

Nick Xenophon
South Australia
Senate
Xenophon won almost 15 per cent of first preference votes at the 2007 election. A split preference ticket will mean his excess votes flow to Labor and Liberal candidates before the Greens this time, potentially changing the balance of power in the Upper House.

Other

Australian Christians
Danielle Canas
Pearce
Senate
Running on a pro-Christian values ticket Canas is a former teacher.

Australian Christians
Frank Papafitou
Victoria
Senate
In the Niddrie district By-election won by the ALP in 2012, Papafitou won 2628 votes after preferences – nearly 10 per cent of the vote.

Christian Democratic Party (Fred Nile Group)
Manny Poularas
McMahon
House of Representatives
Poularas is up against sitting ALP member and minister Chris Bowen who held the seat by 7.8 per cent in 2010.

Citizens
Electoral Council
Costas Goumas
Eden-Monaro
House of Representatives
Merimbula restauranteur Goumas is one of 8 candidates in this marginal Labor seat.

No Carbon Tax Climate Sceptics
Bill Koutalianos
NSW
Senate
Koutalianos is the co-founder and president of the party that does not accept the climate change ‘debate’ has been settled and describes assessments of global warming by the Intergovernmental Panel on Climate Change as “alarmist theories”.

Palmer United
Party
George Melissourgos
Hindmarsh
House of Representatives
Business analyst Melissourgos wants “to see politics return to grass roots initiatives.”

Rise Up Australia Party
Melanie Vassiliou
Chisholm
House of Representatives
The socially conservative RUAP opposes the spread of Islam in Australia, same-sex marriage and multiculturalism.

Rise Up Australia Party
Peter Vassiliou
Hotham
House of Representatives
The RUAP plans an overhaul of Australia’s media laws by restricting “immoral content.”

Socialist Alliance
Liah Lazarou
Adelaide
House of Representatives
The Socialist
Alliance espouses the nationalisation of mines, banks and energy companies. Power to the people.

WikiLeaks Party
Gerry Georgatos

WA
Senate

From his enforced London HQ, Julian Assange leads a party that hopes to bring “transparency, accountability and justice” to Australian politics. In WA Georgatos has caused controversy by preferencing the Nationals over the Greens.

Large statewide swings of up to 12 per cent would be needed to capture all four SA seats that the Liberal Party says are in play.

ADELAIDE

Election-eve polls show Ms Ellis, the Early Childcare and Youth Minister, will struggle to prevail against Liberal candidate Carmen Garcia.

But Adelaide, held by Ms Ellis on a 7.5 per cent margin, is a knife-edge race that may not be decided for days.

The party has moved to capitalise on her strong personal profile this week, downplaying the Labor brand in campaign material and asking voters to instead “keep Kate”.

HINDMARSH

Hindmarsh, held by Labor’s Steve Georganas, is regarded as “gone” by some Labor strategists.

But Mr Georganas, voting today at Cowandilla Primary School, said he was confident of holding the western suburbs seat despite a strong challenge from Liberal candidate Matt Williams.

“I feel very confident. I’m going to win tonight,” Mr Georganas said.

“The polls are saying its 50/50 here in Hindmarsh.

“My view is it is a lot closer than what the newspapers have been saying, it’s a lot closer than what Newspoll has been saying, certainly we’re still in with a big chance.”

The Williams camp was “cautiously optimistic” the first-time candidate could wrest the seat from Mr Georganas.

“There is clearly a mood for change,” Mr Williams said after casting his vote at West Beach Primary School this afternoon.

“There’s definitely a swing on nationally, but whether it will be enough here on the ground in Hindmarsh – we will have to wait to see.”

Mr Williams’ campaign was bolstered this week by the flying visits of Opposition Leader Tony Abbott and former PM John Howard.

While optimistic a result would be clear tonight, “it could be lineball and we have to wait for postal votes”.

WAKEFIELD

Liberals are less confident of their chances in Wakefield and Makin, held on respective margins of 10.5 and 12 per cent, but confident large swings can be achieved.

Labor MP for Wakefield Nick Champion was philosophical.

“All elections are tight but I am getting a good response from voters,” he said.

“A key issue is the car industry – we want to keep manufacturing strong in the north.”

Liberal candidate Tom Zorich said he was buoyed by voter sentiment.

“We’ve worked flat out but it has been worthwhile,” he said.

“I can sense a swing is on – there is a mood for change among people I talk to.”

MAKIN

HE’S a former powerlifting champion who is facing one of his biggest battles- to retain the electorate of Makin in Adelaide’s north-east.

Makin MP Tony Zappia held a 12 per cent margin before voters took to the polls and while nervous, he said he had faith those in the electorate would vote for him again despite the national move away from Labor.

“I am nervous, but I’ve been nervous every single election day, even when I stood for local government, and today is no different,” he said.

“Given the way the polls have been going in recent months, I could expect some of my margin may go down. Anything can happen.

“I put my faith in the judgement of the people I have been serving for the past six years.”

Mr Zappia cast his vote at Pooraka Primary School and visited 10 polling booths before ending his low-profile campaign with a private function at Ridgehaven.

Liberal candidate Sue Lawrie, who voted at UniSA’s Mawson Lakes campus, said it was impossible to tell who would win when asked about her chances at 4.30pm.

“I believe there is a swing on, but I don’t know if it’s enough to get me through,” she said.

“My experienced campaigners say there’s a good swing happening but we’ll have to see how big it is tonight.

“The atmosphere has been really good today, it’s really one of the best campaigns I’ve been involved in on the day.”

The Sunday Mail spoke to voters at several polling booths, including Modbury North father-of-four Steve Westerholm, who voted at Modbury Primary School.

“I’ve always voted Liberal and thought there was no need to do any different this time around,” the 39-year-old said.

Mr Zappia first ran for the seat of Makin in 2004 and achieved a swing of 2.7 per cent, but was defeated by the Liberal Party’s Trish Draper.

He prevailed at the 2007 election with an 8.6 per cent swing- the largest to Labor in Adelaide- and increased his margin further in 2010.

A mayor of the City of Salisbury for 10 years, Mr Zappia has also won 10 national powerlifting championships.

He highlighted aged care and securing the future of the defence sector and Holden in SA as key issues in his electorate.

Today’s federal election marked the eighth time Ms Lawrie, who cast her vote at UniSA’s Mawson Lakes campus, has ran as a Liberal candidate at a Federal or State election.

She contested her first federal election in 1982 for the seat of Price and has ran for the State seats of Cheltenham and Port Adelaide.

This is her first time contesting the seat of Makin, where key campaign highlights included supporting Tea Tree Gully Council’s youth centre HIVE 12- 25.

OTHER SEATS

Labor also anticipates it will lose ground in its safer seats of Kingston and Port Adelaide, but believes it has buffers large enough to prevent losses.

Both sides expect the Liberals to increase their advantage in the marginal seat of presently slim margin in Boothby.

A Coalition win would set the scene for infrastructure funding battles with the State Government, as well as clear the air for the start of the state election campaign.

SA Transport and Infrastructure Minister Tom Koutsantonis warned he was taking legal advice over Coalition plans to cut federal funding for a Tonsley Park rail upgrade.

A $32 million funding clawback was announced in Coalition costings on Thursday.

“There’s boots on the ground already,” Mr Koutsantonis said. “These are Budget announcements that we have entered into with the legitimate government of Australia.”

A dispute is also expected to flare over rival funding plans for South Rd, with the State Government favouring fixing a section near Port Rd instead of the Darlington interchange.

The next prime minister will also have to enter into immediate negotiations with Holden over a new rescue package to secure operations in Adelaide until 2022 and begin finalising multi-billion-dollar plans for a new submarine fleet to be constructed at Osborne.

An estimated 130,000 South Australians have already voted at pre-polling stations or by post.