Australia’s manufacturing sector gains for 13th straight month in July

Australia’s manufacturing sector continued to grow for the 13th straight month in a row in July, according to a survey result revealed by the Australian Industry Group Performance of Manufacturing Index.

The index surged to a level best seen since 2014, to 56.4 in July, slightly above the 50-point mark that separates expansion from contraction, data released by the AiG showed Monday. Individually, new orders, employment and sales all posted huge gains, while inventories moved slightly lower. Further, the overall index surged 4.6 points last month, from 51.8 in May.

Six of eight sub-sectors saw results above 50, with only Machinery & Equipment and Textiles & Clothing contracting below 50, to 48.3 and 48.1 respectively. However, six of seven sectors witnessed growth, with the Australian dollar remaining a major support in lifting production, sales, exports and employment, AiG Group Chief Executive Innes Willox said.

"The strong lift in new orders augers well for the sector’s immediate outlook and for a continuation of the role manufacturing is playing in the rebalancing of the broader economy," Willox added.

Meanwhile, the slight recovery seen over the past years has only been partial, given the continuous slump in the years following the global financial crisis during 2008-09. Much is need to fully revive the country’s manufacturing sector.