Food and beverage was one of only two manufacturing sub-sectors to expand in August, according to the latest Australian Industry Group (AiG) Performance of Manufacturing Index (PMI).
Food and beverage and smaller wood and paper products were the only two out of the eight manufacturing sub-indices to expand in August, SMH reports, with the rest of the industry contracting when compared to July.
The top-line index figure dropped 3.4 points to 47.3, and the three month moving average also dropped to 48.9, where a reading of less than 50 represents industry contraction.
All levels of manufacturing, including production, new orders, sales, employment and supplies all contracted, with the high Australian dollar refusing to relent.
"While exports lifted in August, many respondents expressed ongoing concern about the persistent strength of the Australian dollar, which is maintaining the intensity of import competition," Australian Industry Group chief executive, Innes Willox, said.
An increase in import competition and a reduction in engineering construction were also listed as key contributors to the industry’s contraction in August.