AUSTRALIAN MANUFACTURING SUBDUED IN AUGUST.

SYDNEY, Sept 1 Asia Pulse - Growth in Australia's manufacturing sector was subdued in August, a survey released today found.

The Australian Industry Group (Ai) - PricewaterhouseCoopers Performance of Manufacturing Index (PMI) has indicated that manufacturing was generally subdued.

Production rose in the month, although most of the gains were attributable to large firms with almost half reporting higher output and only 18 per cent reporting falls.

For the remainder, however, activity remained subdued leading to a relatively flat Australian PMI reading of 51.0 points for August, up only 0.5 points since July.

Seven sectors reported increased activity, including transport equipment, basic metal products, construction material products, and paper, printing and publishing.

Ai Group Deputy Chief Executive, Heather Ridout, said that the latest Australian PMI contained some mixed signals about future prospects.

"Despite the slight improvement in August, the Australian PMI staying close to the 50-point mark for the third consecutive month indicates that overall manufacturing activity remains at low levels," she said.