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Australia's manufacturing contraction deepens

Staff writer ▼ | February 4, 2014
Activity across Australia's manufacturing sector weakened for a third month in a row in January. The Australian Industry Group's performance of manufacturing index fell 0.9 point in January from December to 46.7 points.
Australia manufacturing
Australia manufacturingActivity across Australia's manufacturing sector weakened for a third month in a row in January. The Australian Industry Group's performance of manufacturing index fell 0.9 point in January from December to 46.7 points.


Index elow 50 indicates a contraction in activity. "2014 looks to be another challenging year for many Australian manufacturers, although a handful of areas are showing some positive signs of growth," Australian Industry Group Chief Executive Innes Willox said.

The overall weakness in manufacturing comes despite a sharply weaker Australian dollar, Mr. Willox said, adding that muted domestic demand is also weighing on sales in the sector. "Muted local demand and a difficult export market means they (manufacturers) are in no position to assume the lead in generating alternative sources of growth as the mining investment boom fades through 2014."

The policy making board of the Reserve Bank of Australia (RBA) meets Tuesday for the first time in 2014 and is expected to keep interest steady.


 

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