A pick up in housing construction and strong demand for food and beverages continue to benefit the manufacturing sector, with activity expanding for a second month.
The Australian Industry Group's Australian Performance of Manufacturing Index rose 1.3 points to 51.7 in August, with the result above the 50 level implying activity in the sector had grown.
Three of the eight manufacturing sub-sectors expanded - food, beverages and tobacco; wood and paper; and textiles, clothing, footwear and furniture.
Ai Group chief executive Innes Willox said the expansion was driven by greater production, employment and new orders.
"It is also positive for the economy overall, which requires a broader base of growth as the mining investment boom continues to unwind," he said.
Mr Willox said manufacturers were hopeful the results would be built upon to overcome continued headwinds from reduced orders for materials and equipment from the mining sector and car producers.
Share
