The Australian manufacturing sector has started Q2 on a solid note, with the Commonwealth Bank Manufacturing Purchasing Managers Index (PMI) running above average in April.
The PMI stepped up by 1.1 points in April to 55.5 from 54.3 in March.
Business conditions improved with acceleration in production growth.
The rise in new business was attributed to improved client confidence.
Purchasing activity rose at the fastest pace in four months.
Inflation risks are rising as well. Growth in input and output prices are at the high end of the survey range.
The PMI surveys, started since May 2016, cover senior purchasing managers in 400 Australian companies in the manufacturing and service sectors each month. Manufacturers are surveyed each month on how output, orders, jobs, delivery times and stocks have changed relative to the previous month.
The PMI’s cover key areas of the economy. They are part of global PMI releases.