SYDNEY (Reuters) - Australian manufacturers reported a marked pickup in activity in June due partly to a jump in new export orders from Asia, encouraging more hiring as capacity limits were stretched, a survey showed on Monday.
The Commonwealth Bank/Markit purchasing managers index climbed to 55.0 last month, recovering from a slight slowdown to 53.2 in May.
Almost one-third of the survey panel reported a rise in new sales in June, with exports expanding at the quickest pace in four months.
New business from Asian markets, particularly China, Indonesia and the Philippines, were noted by panelists, and future output expectations were strongly positive.
"The Australian manufacturing sector moved through the second quarter at a decent pace," said Michael Blythe, CBA's chief economist. "And the leading indicators suggest the positive manufacturing momentum is set to continue."
Firms took on more staff to meet the demand, though capacity was still stretched and delivery times lengthened. Respondents also noted an acceleration in input prices, particularly metals, some of which was passed on in higher output prices.
"The positive spinoff is solid labour demand," Blythe added. "The ongoing risk is rising input costs that a strong economy is allowing to flow through to output prices."
(Reporting by Wayne Cole; Editing by Paul Simao)
