Manufacturing sees fifth straight month of growth

The local manufacturing sector grew for the fifth straight month, according to the Australian Industry Group PMI survey, released this morning.

The PMI for November achieved a result of 52.5, up 2.3 points on the previous month and the fifth straight month above 50.

Any result over 50 indicates expansion. The 12-month average is 49.1.

Five of eight sub-sectors were in expansion, with Food, Beverage & Tobacco (the biggest sub-sector) back in growth territory after October’s result of 49.7.

Chief executive of the Ai Group, Innes Willox, said that the lower Australian dollar and efficiencies introduced by manufacturers in recent years had been helpful in recent growth.

"Improvements in sales, exports, production, new orders and employment underwrote another stronger manufacturing performance in November,” said Willox in a statement.

“However, areas of weakness remain most notably in the important metals and machinery & equipment sub-sectors, which continue to feel pressures from tough global market conditions and the weakening in Australia of mining investment and automotive assembly."