Australia's manufacturing industry has expanded for a fourth consecutive month, though only marginally.
The Australian Industry Group performance of manufacturing index fell by 1.9 points to 50.2 in October, sitting just above the 50 level separating expansion from contraction.
Ai Group chief executive Innes Willox said the manufacturing sector had clocked up the longest period of expansion in five years, thanks to a strong performance from exports.
But momentum had eased, he said.
"While production lifted again, domestic sales and employment were lower and new orders were broadly unchanged," Mr Willox said.
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He said the process of "broadening the base" of growth across the economy remains gradual and tentative.
"There is clearly scope for stimulatory measures to boost domestic activity," he said.
Four of the eight manufacturing sub-sectors expanded - petrol; wood and paper; textiles, clothing, footwear and furniture and non-metallic mineral products.
And, after 16 months of expansion, the food, beverages and tobacco sub-sector was broadly stable, the report found.
Among the seven activity sub-indexes, only exports and supplier deliveries were firmly positive in October.
The wages sub-index increased by 2.7 points, with subdued annual wage growth likely reflecting declining demand for labour in the manufacturing industry, a stubborn unemployment rate and very low inflation.
