Robust production

GROWTH in Australia’s manufacturing sector has enjoyed 16 consecutive months of expansion, its longest run of growth in 13 years.

The Australian Industry Group’s Australian Performance of Manufacturing Index (PMI) rose 2.5 points to 58.7 points in January, which is comfortably above the 50point level that indicates an increase in manufacturing activity.

Ai Group chief executive Innes Willox said it marks a strong start to the year for Australia’s manufacturing industry .

He said overall, production and sales volumes were robust and employment also grew but hefty power costs and strong competition, in part due to the stronger Australian dollar, continued to keep margins tight and restrain wage rises.