Sector still expanding

AUSTRALIA’S manufacturing sector has continued to expand but at a slower pace, as modest wage increases reinforce a high level of employment growth. The Australian Industry Group’s Australian Performance of Manufacturing Index (PMI) in February slid 1.2 points to 57.2 points, still above the 50-point level and therefore indicating expansion rather than contraction.

“That said, for some producers, skill-shortages are reemerging as a constraint on growth and are putting pressure on remuneration among a range of occupations,” Ai Group chief executive Innes Willox said in a statement.