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SYDNEY, Feb 1 Asia Pulse - Manufacturing activity has slipped for the first time in more than 18 months with volatility in financial markets blamed for the decline.
The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index (PMI) fell by 8.4 index points in January to 49.2 points.
The easing in manufacturing activity in January comes after 19 consecutive months of growth for the sector.
In a joint statement, the Australian Industry Group (AiGroup) and PricewaterhouseCoopers said global market turbulence contributed to a cautious start to the year for manufacturers.
AiGroup chief executive Heather Ridout, however, remained upbeat about prospects for the manufacturing sector.
"How events unfold in global financial markets and the future course of interest rates will be important in shaping the prospects for the industry in the months ahead," Ms Ridout said.
"Nevertheless, at this stage manufacturers remain reasonably positive with moderate growth predicted for the year in the face of intensely competitive market conditions."