Australia's manufacturing sector continued to strengthen in April, with factory activity expanding for a seventh consecutive month.
The Australian Industry Group's performance of manufacturing index (PMI) climbed 1.7 points to 59.2 in April, remaining above the 50-point level that indicates an expansion in activity.
That was despite recent data indicating softness in economic and wages growth, and worries over high unemployment.
"The strong showing by Australian manufacturing in April consolidates the recovery that has been underway in the industrial sector since August 2015," Ai Group chief executive Innes Willox said.
Each of the seven sub-indexes expanded in April.
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The growth was led by sales - up 7.8 points to 65.5, exports - up 7.5 points to 58.6 and supplier deliveries rising 9.4 points to 62.3.
New orders dipped 1.1 points to 61.5, but remained in expansion territory during the month.
Among the manufacturing sub-sectors, seven of the eight segments expanded during April, with only the diverse textiles, clothing, furniture and other products sub-sector contracting.
April's performance included strong growth in exports and local sales of food and beverages manufacturing, building materials, specialist machinery and equipment and specialist chemicals.
A rebound in output and prices in the agricultural and mining sectors also had a positive effect on demand for a range of locally produced manufactured equipment.
The growth is occurring despite the closure of the automotive assembly sector and recent disruptions in some locations due to Cyclone Debbie, Ai Group said.
Despite selling prices recovering, manufacturers are still likely to struggle to improve margins given the sharp rises in energy costs.
"These increases in energy costs are proving difficult to pass on, threatening margins and the very viability of businesses in some manufacturing sectors," Mr Willox said.
The recent intervention announced by the government are welcome steps towards the much-needed comprehensive energy and climate policy framework, he said.
