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The manufacturing sector in Australia continued to expand in January, and at a faster pace, the latest survey from S&P Global revealed on Friday with a manufacturing PMI score of 52.4.
That's up from 51.6 in December, and it moved further above the boom-or-bust line of 50 that separates expansion from contraction.
Output growth accelerated across both the manufacturing and service sectors, driven by quicker expansions in new sales for both sectors. According to panelists, the widening of customer bases and successful business development efforts underpinned the latest uptick in new business.
The report also showed that the services PMI improved to 56.0 from 51.1 a month earlier and the composite PMI climbed to 55.5 from 51.0.
The latest uptick in new work inflows was also supported by better external demand. A renewed rise in overseas new orders for Australian manufactured goods helped to support the fastest expansion in overall new export orders in three-and-a half years.
To cope with rising workloads, Australian firms hired additional staff at the start of the new year. That said, the overall rate of employment growth softened in January compared to December, due to slower job creation in the service sector.
