Australian manufacturing activity has slipped despite a sharp drop in the currency.
The Australian Industry Group's national barometer of factory activity fell into the contractionary zone in November as production, new orders and supplier deliveries weakened.
Its monthly performance of manufacturing index, or PMI, fell by 5.4 points to 47.7 points in November, putting it into the sub-50 point area signalling a shrivelling of activity.
Ai Group chief executive Innes Willox says the lift in activity during September and October, following the federal election, was not sustained, despite a fall in the Australian dollar.
"The mild lift in local new orders immediately after the September federal election is already drying up, as mining, government, maintenance and research and development spending slows," he said in a statement on Monday.
"While the current downward pressures on the dollar are positive for the industry, the currency remains stubbornly high."
The Australian dollar fell 6.5 per cent, or more than six cents, between late October and late November, from 97 US cents to levels below 91 US cents.
But exports were still struggling in November, with a reading below 30 points.
The metals and chemicals sectors are suffering a contraction in activity.
