The Australian Industry Group Australian Performance of Manufacturing Index (PMI), seasonally adjusted, recorded a result of 47.7 in November.
As The Courier Mail reports, this fall follows two months of growth in September and October. The November result represented a fall of 5.4 points.
A figure greater than 50 indicates growth in the sector, while a figure under 50 indicates contraction.
The positive figures in previous months were largely attributed to the good performance of food and beverage manufacturing. However, in November food and beverages slowed, as did the non-metallic mineral products, metal products and machinery and equipment sub-sectors.
As The Australian reports, the contraction came despite the recent fall in the Australian dollar.
In a statement on Monday, Ai Group chief executive Innes Willox said, "The mild lift in local new orders immediately after the September federal election is already drying up, as mining, government, maintenance and research and development spending slows."
"While the current downward pressures on the dollar are positive for the industry, the currency remains stubbornly high."
On the positive side, the manufacturing employment subindex rose 1.5 points to 50.1 points. This is the best result since October 2011.