An expansion in the manufacturing sector over the past two years is showing signs of slowing.
However, the latest Australian Chamber of Commerce and Industry-Westpac industrial trends survey shows manufacturers are still benefiting from a strong upswing in new home building and a fall in the Australian dollar.
"The results signal that all parties in the election campaign need to strengthen confidence in the manufacturing sector so that the positive sentiment of recent surveys is continued," the Australian Chamber's boss James Pearson says.
The survey's composite index eased 6.3 points to 55.1 in the June quarter, but remained above the key 50-point level that separates expansion from contraction in the sector.
Westpac senior economist Andrew Hanlan said that was still a positive result and stood above the 2015 average, aided new orders, output and overtime, and an emerging resilience in employment.
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"Manufacturing is benefiting from a strong upswing in new home building activity, although rates of growth have moderated," Mr Hanlan said.
"Mining investment is turning down sharply and global fragilities persist."
