The Australian Industry Index recorded its strongest headline result in four years in February, primarily driven by the services sector and notable rises in employment, input, and new orders indicators, Australian Industry Group said Wednesday.

The index rose by 9 points last month despite muted sales at negative 11.2 and ongoing cost pressure.

Business services activity jumped, helped by new orders in the new year, with the indicator rising 11.4 points to negative 2.1 in February.

The employment indicator shifted into positive territory for the first time in three years, climbing to 12.8, the industry body added.

Construction slowed during the month as regulatory challenges and skill shortages hampered operations, while manufacturing remained in contraction amid soft demand.