Manufacturing boost

AUSTRALIAN manufacturers have reported that activity picked up in August after a soft July, with new orders and exports rebounding in a positive sign for economic growth.

A survey by the Australian Industry Group found its main activity index rebounded by 4.7 points to 56.7 in August, led by a jump in export orders. The Commonwealth Bank/Markit purchasing managers index firmed to 53.2, from 52.4 in July. A result above 50.0 represents expansion. Both surveys showed some pick-up in price pressures, partly because of higher oil and raw material costs. Drought conditions were also having an impact. “Food and beverage manufacturers are reporting disrupted supply and higher prices of raw inputs, while manufacturers who sell to the agricultural sector or its supply chain are reporting reduced sales,” the Ai Group said.