Australia\u2019s manufacturing sector ended the year in contraction, according to the Australian Industry Group\u2019s monthly Performance of Manufacturing Index survey.
\nThe Ai Group\u2019s PMI was down 3.2 points overall for the month to 46.9, meaning it slipped back into negative territory after November\u2019s marginally expansionary result.
\nAny result under 50 in the PMI indicates contraction, and above it, expansion.
\n\u201cWe would have hoped to have seen a stronger Australian PMI in the lead-up to Christmas, but the finding is consistent with other publicly released data,\u201d said the AiG\u2019s chief executive, Innes Willox.
\nAs with November, four of the eight sub-sectors tracked were in growth territory, led by Food, Beverages and Tobacco, which recorded a result of 60.4 (up 1.3 points).
\nDespite a falling dollar, which meanwhile hit a five-and-a-half-year low this morning, conditions remained difficult for the industry for a number of reasons. These included tight margins, with the input costs sub-index up to 70.3.
\n\u201cRespondents to the Australian PMI welcomed the further depreciation in the Australian dollar, but noted that the level of the dollar continues to encourage strong import competition,\u201d said Willox.
\n\u201cBusiness sentiment and appetite for investment remain weak. The closure of Australian automotive assembly facilities now under way, plus the rapid decline in mining investment activity, are also weighing heavily on demand for locally made machinery inputs and components.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"