The rate of contraction in the industry has risen slightly, according to the Australian Industry Group’s Performance of Manufacturing Index survey results.
monthly, seasonally-adjusted PMI showed an overall result of 47.9 for March,
down from February’s 48.6.
under 50 indicates contraction, and above it growth.
strongest sub-sector growth was seen in non-metallic minerals (66.9), followed
by coal chemicals and rubber products (62.2), wood and wood paper products
(55.6) and food and beverage (53.4).
The Ai Group’s CEO Innes Willox said, "The
latest Australian PMI shows that
large parts of the economy are failing to gain traction in 2014.
"Subdued local demand and the newly resurgent dollar are
weighing heavily against the efforts of manufacturers to rebuild their sales
base in Australia and internationally."
AiG’s key findings through the survey were input prices (66.7) and average wages
(55.2) both presenting cost difficulties for manufacturers.
the outlook remained fragile, with the housing recovery weak throughout most of
the country and consumer spending on non-food goods muted.