Australian manufacturing up

The manufacturing sector has recorded its first quarter of positive growth in nine months, but the US tragedy, the Ansett collapse and falling semiconductor sales could impact in coming months.

The Australian Industry Group/PricewaterhouseCoopers' Survey of Australian Manufacturing found 40% of surveyed firms increased production in the September quarter. The survey showed the improvement was mainly due to an increase in domestic demand, allowing firms to expand their markets and take advantage of the export opportunities provided by the low Australian dollar.

Large firms reported the highest percentage of production increases (47%) and small firms the lowest (36%). "It is heartening that the manufacturing sector has finally returned a positive quarter and that Australian companies are confident," Ai Group Deputy Chief Executive, Heather Ridout, said.