Australian factory activity returned to growth in January, with the S&P Global Australia Manufacturing Purchasing Manager’s Index (PMI) landing just above the neutral 50 mark to stand at 50.2 against last month's 47.8, according to a report by S&P Global released on Monday.
The report indicated that output returned to growth as new orders declined at a softer rate, while employment levels also rose "supporting the clearance of backlogged work. Even so, both purchasing activity and inventory levels declined. Business optimism also followed this trend and eased slightly among manufacturers. Price pressures intensified, leading to a climb in selling prices.
"January’s Australian Manufacturing PMI data revealed that business conditions improved for the first time in a year. Manufacturing production returned to growth after falling for over two years as new business fell at a noticeably slower rate. Firms were further willing to raise staffing levels, adding to signs of a turnaround in the goods producing sector," Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said.
