The overall result in the Performance of Manufacturing Index was down slightly in June, falling 0.3 points to 48.9.
The Australian Industry Group’s PMI remained in contraction for the eighth straight month, with “many respondents” citing difficulties from the resurgent Australian dollar.
A result under 50 indicates contraction, and above it growth, in the seasonally-adjusted, survey-based figures.
“Respondents from import-competing businesses in particular noted the adverse impacts of the renewed strength of the Australian dollar,” said Innes Willox, the Ai Group’s chief executive, in a statement.
“Nevertheless, there were some positive signs: exports by the large food and beverages sub-sector expanded in June which lifted total manufactured exports while new orders remained in positive territory.”
Another positive, according to Willox, was the repeal of the carbon tax.
Food and beverage recorded a result of 52.5, up from 49.2 in May. The new orders sub-index was back in positive territory from May’s result at 51.2.