CANBERRA - Activity in Australia's manufacturing sector strengthened in June on the back of stronger new orders, supplier deliveries and production, a private survey said on Monday.
The Australian Industry Group PriceWaterhouseCoopers Performance of Manufacturing Index (PMI) rose 5.6 points to 54.5 in June, seasonally adjusted.
The survey reported growth
in 10 of the 12 sectors, up from seven sectors recording growth in May.
"The June Australian PMI constitutes a better than expected year end, underpinned by further growth in consumer demand and early production for upcoming new passenger vehicles," AI Group Chief Executive Heather Ridout said in a statement.
"The result was encouraging and seemed to shrug off factors such as higher fuel costs and interest rate pressures. Nevertheless, underlying conditions remain challenging, with further industry restructuring likely."
The strongest increases in June were in construction material products, paper, printing and publishing, and textiles. But activity fell for clothing and footwear, and chemicals, petroleum and coal products.
A reading above 50 indicates a sector is generally expanding, while a reading below 50 indicates contraction. The PMI is based on a survey of about 200 manufacturing companies.
- REUTERS
