Australian manufacturing grows for tenth straight month

The Australian manufacturing sector grew in April for the tenth consecutive month, the longest period of expansion since September 2006, according to the Australian Industry Group Performance of Manufacturing Index.

The monthly PMI survey recorded a result of 53.4, down 4.7 points on March’s result. Any number over 50 indicates expansion.

Innes Willox, chief executive of the Ai Group, said that the sector had had a difficult decade, and the current turnaround was welcome.

“While margins remain tight, recovering domestic market share and building momentum in a variety of export markets provide a strong foundation for the lift in confidence required for the sector to move up another gear,” Willox said in a statement.

“A budget that boosts incentives for business investment and innovation would come at just the right time for manufacturers to capitalise on recent gains.”

Five of eight subsectors achieved results over 50. The Food, Beverage and Tobacco subsector recorded a record result, 74.1.

All seven activity sub-indexes were in expansion except employment (down 4.2 points to 49.0).

Read the results here.