Fed: Strong car sales boost manufacturing performance - survey
CANBERRA, Aug 1 AAP - Manufacturing scraped into positive growth territory in Julythanks to the strong contribution from the automotive sector, a survey revealed today.
The Australian Industry Group-PricewaterhouseCoopers Australian Performance of ManufacturingIndex recorded 50.5 points for the month.
The survey group said that without strong auto activity, the Australian PMI would haverecorded 49.7 points, a second successive monthly decline in activity.
In addition, new orders recovered to 51.9, again due to the strong contribution ofthe automotive sector. Excluding auto, the index only grew marginally with a reading of50.6 points.
AiG deputy chief executive Heather Ridout said the automotive sector was the main areaof strength, particularly in terms of new orders where it accounted for half of all growthin order books.
"New models, strong car sales, increasing auto production and the flow-on effects oncomponent manufacturers saved the Australian PMI from remaining in negative territory,"
she said in a statement.
"Overall, while the current business climate is not conducive to an early and strongupturn in manufacturing conditions, the recent unexpected strength in housing approvalsand retail sales if sustained will inevitably flow back into higher demand for manufacturing."
AAP dep/lb/jlw
KEYWORD: MANUFACTURING
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