Australia’s manufacturing sector expanded for a second month in a row in October, further signaling a strengthening recovery after a period of contraction lasting more than two years.
The Australian Industry Group’s performance of manufacturing index rose 1.5 points to 53.2 in October from the previous month–edging further above the 50-point level that signals expansion. Prior to September, the index had spent the previous 26 months in contraction territory, the longest period in its 21-year history.
“October saw the manufacturing sector build on the modest gains recorded in September. Production expanded for the first time in two and a half years and new orders continued to recover,” said AIG’s chief executive, Innes Willox. “While there are certainly encouraging signs, it is too early to call a recovery with a good share of the gains representing a catch-up following a very slow mid-year period,” Willox said.
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