The Australian manufacturing sector continued the positive start to 2018 according to the latest Australian Performance of Manufacturing Index results.
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The monthly survey, compiled by the Australian Industry Group (Ai Group) gave a reading of 57.5 points for the month of February (readings above 50 indicate growth).
Although still in expansion, the result is actually a drop of 1.2 points from January indicating growth is still happening, but at a slower rate. The positive result for February is the 17th consecutive month of expansion, the longest positive run for the sector since 2005.
“The broad-based expansion in Australia’s manufacturing sector continued in February led by the food & beverage and the petroleum, chemicals & rubber product sub-sectors,” Ai Group chief executive Innes Willox says.
“Production, employment and exports were all encouragingly strong and the further growth in new orders points to the likelihood that the sector will extend its 17-month unbroken run into autumn.”
Of the eight sub-sectors counted in the Australian PMI, six recorded expansion in February (food and beverages; wood and paper; petroleum, coal and chemicals; non-metallic minerals; metal products; machinery and equipment) while two remained in contraction (textiles, clothing, furniture and other; printing and recorded media).
In a positive for manufacturing workers, the employment sub-index recorded a 5.7 point jump from January, recording 57.8 for the month.