SYDNEY (Reuters) - Australian manufacturing activity continued to expand in August with firms upbeat on the outlook for the next 12 months, although a dip in export orders dragged on the pace of growth, a survey showed on Friday.
The Commonwealth Bank and IHS Markit Purchasing Managers’ Index (PMI) dipped to a seasonally adjusted 53.5 in August, from 54.4 in July. That was the lowest reading in a year, but was still comfortably above the 50.0 threshold between expansion and contraction.
The survey showed a marginal fall in export orders, the first decline in the 16-month history of the series.
Yet there were reports of underlying demand strength domestically and over 65 percent of the survey panel forecast an increase in output over the next 12 months.
Reporting by Wayne Cole; Editing by Richard Pullin