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The manufacturing sector in Australia continued to expand in December and January, and at a faster pace, the latest survey from the Australian Industry Group revealed on Monday with a combined seasonally adjusted Performance of Manufacturing Index score of 55.3.
That's up from 52.1 in November and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Australian manufacturing suffered severe disruptions in output, sales and activity during Q2 and Q3 of 2020 due to the COVID-19 pandemic but has been in recovery since September.
Manufacturing businesses reported stronger and more broad-based recovery over the summer holiday period. Five of the six manufacturing sectors included in the survey reported positive trading conditions in the last two months, with the strongest results reported from manufacturers in machinery and equipment and chemicals, pharmaceuticals, cleaning, rubber, petroleum and related products.
