Australia Manufacturing Sector Accelerates In February - Markit

(RTTNews) - The manufacturing sector in Australia continued to expand in February, and at a faster pace, the latest survey from Markit Economics showed on Monday with a manufacturing PMI score of 57.6.

That's up from 55.1 in January, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Firms reported higher demand coupled with an easing of COVID-19 disruptions enabling output to return to growth. Employment levels likewise rose to meet the growth in demand. That said, suppliers' delivery times lengthened at a more severe rate, leading to the accumulation of backlogged work. Shipping delays, manpower constraints and COVID-19 disruptions were listed as reasons contributing to the lengthening of lead times.

The survey also showed that the services PMI jumped to 56.4 in February from 46.6 in January, while the composite PMI improved to 55.9 from 46.7.

The receding of the COVID-19 Omicron wave from the peak in January enabled new business and activity to expand though foreign demand remained subdued. As a result of higher overall demand, hiring activity picked up as firms expanded operating capacity accordingly.