AUSTRALIAN MANUFACTURING ACTIVITY SLUMPS TO LOW LEVEL.

SYDNEY, Nov 3 Asia Pulse - Manufacturing activity slumped to its lowest level in 16 years during October, as slower economic growth eroded confidence of business and consumers, a survey says.

The Australian Industry (AI) Group-PricewaterhouseCoopers Australian performance of Manufacturing Index (PMI) fell 6.8 index points to 40.4 points in October.

It was the lowest level in the series since it began in 1992 and the fifth consecutive monthly fall in activity.

Ai Group chief executive Heather Ridout said the volatility in global financial markets has affected Australian manufacturing through a slowdown in economic growth, both globally and domestically.

"The ongoing decline in production reflects the continuing decline in new orders which has meant a historic low for the new orders component of the Australian PMI in October," Ms Ridout said.

"The slump in new orders suggests that there is a crisis of confidence arising from a crisis of uncertainty."

The report noted all sectors of the Australian PMI fell in October.