Australia Manufacturing Slips to Contraction on War Disruptions

Australia’s manufacturing sector posted its first contraction in five months in March, as demand weakened and cost pressures surged. The escalation of the Middle East war is cited as a driver of higher input costs and softer activity, posing downside risks to domestic growth and potential upward pressure on prices.

Analysis

Australia’s manufacturing sector posted its first contraction in five months in March, as demand weakened and cost pressures surged. The escalation of the Middle East war is cited as a driver of higher input costs and softer activity, posing downside risks to domestic growth and potential upward pressure on prices.