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SYDNEY, Sept 3 Asia Pulse - An industry survey has found that NSW manufacturers are more optimistic about the future, despite being unable to escape a profit squeeze.
The September quarter 2001 Survey of Manufacturing in NSW examined 418 manufacturing firms, which employ around 16 per cent of all those employed in the manufacturing sector in NSW.
The survey found that the level of optimism expressed by manufacturers is the highest in almost two years, although it had not been reflected in improved business conditions.
This was despite manufacturers noting further deterioration in profitability in the September quarter - the survey's profitability index stands at minus-24, the seventh consecutive quarter of decline.
Higher costs, lower sales, constrained selling prices and firm competition all combined to squeeze profits in the September quarter, the survey said.
All nine industry sectors and all four regional groupings of manufacturers surveyed said they expected an improvement in business conditions in the coming quarter.
The survey was jointly conducted by Australian Business Ltd (ABL) and the Commonwealth bank.
Source: HighBeam Research, AUSTRALIAN MANUFACTURERS SHOW OPTIMISM FOR FUTURE.