Over January, Australia’s manufacturing sector continued to grow for it’s seventh consecutive month marking the longest run of expansion since 2010.
The Australian Industry Group’s Performance of Manufacturing Index declined by 0.4 points to 51.5. However as it remains over the key 50-point level it still indicates that activity levels are expanding.
There was a huge restocking in inventory levels in January, which greatly contributed to the strength in its expansion with the survey’s stocks subindex jumping 10.7 points to 59.2. Supplier deliveries and production already had increases of 1.0 and 0.8 point gains. The stronger demand for local building materials, food and healthcare products are also contributing factors.
The Australian dollar, which is currently at just $US.70 has boosted exports to Asia and the Middle East. Ai Group chief executive Innes Willox said, “While the overall growth is clearly encouraging, there is still a considerable way to go before manufacturing is contributing fully to the much-needed diversification of the domestic economy.”
via Business Insider