The Australian Industry Group (AiG) released its manufacturing purchasing managers' index (PMI) for Australia on the late Monday evening. The index rose to 53.5 in February from 51.5 in January. It was the highest level since July 2010.
A reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction in the sector.
Four of the five activity sub-indexes were below 50 points in February.
Main contributor to the rise was production.