SYDNEY, March 1 (Reuters) - Australian manufacturing activity expanded at its fastest pace in over two years in February, led by sectors exposed to strength in housing and resources, a survey showed on Monday.
The Australian Industry Group/PriceWaterhouseCoopers performance of manufacturing index (PMI) rose 2.8 points to 53.8 in February, taking it further above the 50 threshold between contraction and expansion.
In a promising sign for future growth, the index of new orders held steady at 56.0 after a jump in January. The survey's measure of employment firmed 2.6 points to 49.7, while inventories rose 6 points to 49.0.
'The combination of rising new orders and production augers well for the industry in coming months,' said Ai Group Chief Executive Heather Ridout.
'Those sectors exposed to the construction and resources sectors are showing signs of stronger activity while consumer related sectors have weakened,' she added.
Firms complained about the strong Australian dollar and higher interest rates.
The Reserve Bank of Australia (RBA) lifted interest rates three times to 3.75 percent late last year, and may move again at its March policy meeting on Tuesday.
(Reporting by Wayne Cole; Editing by Balazs Koranyi) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: AUSTRALIA ECONOMY/MANUFACTURING (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Australian Industry Group/PriceWaterhouseCoopers performance of manufacturing index (PMI) rose 2.8 points to 53.8 in February, taking it further above the 50 threshold between contraction and expansion.
In a promising sign for future growth, the index of new orders held steady at 56.0 after a jump in January. The survey's measure of employment firmed 2.6 points to 49.7, while inventories rose 6 points to 49.0.
'The combination of rising new orders and production augers well for the industry in coming months,' said Ai Group Chief Executive Heather Ridout.
'Those sectors exposed to the construction and resources sectors are showing signs of stronger activity while consumer related sectors have weakened,' she added.
Firms complained about the strong Australian dollar and higher interest rates.
The Reserve Bank of Australia (RBA) lifted interest rates three times to 3.75 percent late last year, and may move again at its March policy meeting on Tuesday.
(Reporting by Wayne Cole; Editing by Balazs Koranyi) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: AUSTRALIA ECONOMY/MANUFACTURING (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.