MANUFACTURING ACTIVITY SOFTENS IN NOVEMBER.

SYDNEY, Dec 1 Asia Pulse - Manufacturing activity in Australia softened in November, due to weak domestic spending, cost pressures and weakness in residential construction.

The Australian Industry Group/PricewaterhouseCoopers (PwC) Australian performance of manufacturing index (PMI) fell by a seasonally adjusted 3.6 points to 44.2 in November.

A reading above 50 indicates that manufacturing activity is generally expanding while a reading below 50 indicates that it is declining.

Ai Group chief executive Heather Ridout said that while the slowdown in activity was broadly based there remained some areas of strength.

"It is clear the industry is restructuring in the face of competition and cost pressures and this does not auger well for employment growth," she said.

"There was some continuing strength, however, particularly in areas servicing parts of the mining and non-residential construction industries."

PwC industrial products leader Graeme Billings said manufacturing is struggling in the face of weak domestic spending, the continuing strength of the dollar, import competition and substantial cost increases.