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Manufacturing returns to growth

AAP logoAAP 31/10/2016 Lilly Vitorovich

Australian factory activity has returned to growth, signalling very mild expansion across the manufacturing sector.

The Australian Industry Group's performance of manufacturing index (PMI) rose 1.1 points to 50.9 in October.

The rise was driven by stronger growth in exports, sales and new orders, which highlights the growing importance of exports to manufacturers and suggests further growth ahead, the Ai group says.

Ai Group chief executive Innes Willox say October's stronger data are encouraging, although growth remains relatively narrowly based.

Large machinery and equipment rose 1.3 points to 54.1 while petroleum and chemical products continued to expand, up 2.7 points to 55.4.

However, the largest manufacturing sub-sector - food and beverage - lost some steam, dropping 2.4 points to 50.4.

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