Activity across Australia's manufacturing sector also showed some signs of improvement in July, buoyed by economic stimulus and a rundown in inventories.
The Australian Industry Group/PricewaterhouseCoopers Australian Performance of Manufacturing Index rose by a seasonally adjusted 6.1 points in July to 44.5.
The index remains below the 50 point level separating expansion from contraction, but is at its highest since September 2008.
"Australia's manufacturing sector is one step away from expanding again," said an analyst reporting on the result. "Activity is improving quickly with the manufacturing gauge posting its strongest improvement in 16 years over the past three months," he said.