The private sector industry survey shows manufacturing activity has slumped to recessionary levels, because of weak global and domestic demand.
The survey conducted by the Australian Chamber of Commerce and Industry together with Westpac shows the main index of activity fell 6.4 points this quarter to levels not seen since the last recession in the early 1990s.
The survey shows investment plans have fallen to their lowest level since the 1982-83 recession.
This is due to falling demand, weak confidence, record low profit expectations and growing concerns about the availability of finance.
Despite this outcome, the survey showed that companies believed the economic downturn was not likely to get much worse.
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