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AUSTRALIAN MANUFACTURING ACTIVITY DECLINES IN AUGUST.

AsiaPulse News

| September 01, 2008 | COPYRIGHT 2008 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

SYDNEY, Sept 1 Asia Pulse - Manufacturing activity declined for a third straight month in August as firms struggled with falling demand and higher costs, a survey has found.

The Australian Industry Group-PricewaterhouseCoopers Australian performance of manufacturing index (PMI) rose 0.1 index points to 47 points in August.

While an improvement on the July figure, the result was still below the 50 level which separates expansion from contraction.

Weaker global growth, rising input costs and the higher value of the Australian dollar also hurt manufacturing companies, the survey said.

"Tighter financial conditions have driven an easing of consumer demand and weaker housing construction, which have reduced demand for manufactures," the survey said.

Ai Group chief executive Heather Ridout said manufacturing was "caught in a bind between falling demand and higher input costs".

"With new orders falling sharply and the price of inputs ...

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Source: HighBeam Research, AUSTRALIAN MANUFACTURING ACTIVITY DECLINES IN AUGUST.

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