AUSTRALIAN MANUFACTURING GROWTH HOLDS UP IN APRIL: SURVEY.

SYDNEY, May 1 Asia Pulse - A new survey has found Australian manufacturing growth held up well in April, supported by a lift in new orders and continued, although slightly softer, growth in production and employment.

The Ai Group/PricewaterhouseCoopers performance of manufacturing index (PMI) for April, seasonally adjusted, was 54.8 points, up slightly from 54.0 points in March.

With the survey period overlapping with the war in Iraq, the results showed that Australian manufacturing largely avoided the negative consequences of war, unlike activity in the United States and Europe where equivalent indexes of activity have already recorded falls.

In contrast, the Australian index was still holding its ground.

"The April Australian PMI, and the index's performance in recent months suggests that manufacturing growth has stabilised at a moderate level, albeit significantly below the peak achieved in the middle of 2002," Ai Group deputy chief executive Heather Ridout said.

"While it is difficult to predict turning points in the economic cycle, a number of signals from the Australian PMI in recent months and other economic data points to the need for caution about the future outlook.

"This is indicated by a significant build-up of stocks and an easing in domestic demand, with official estimates pointing to softer growth in retail, housing, employment and exports."