Australia Manufacturing Index Inches Higher To 48.3 - AiG

(RTTNews) - The manufacturing sector in Australia continued to contract in December, albeit at a slower rate, the latest survey from the Australian Industry Group revealed on Monday with a Performance of Manufacturing Index score of 48.3.

That's up from 48.1 in November, although it remain beneath the boom-or-bust line of 50 that separates expansion from contraction.

With new orders again in negative territory in December and trending down since March, the current weak conditions for manufacturers are likely to continue into the New Year, with the strong food and beverages sector a notable exception.

"The downturn in manufacturing recorded in November and December is a clear warning of the growing risk of a more broad-based slackening of an economy already in the slow lane. It adds weight to the view that serious consideration should be given to further fiscal stimulus," Ai Group Chief Executive Innes Willox said.