Inflationary pressures hit manufacturing sector

Its Performance of Manufacturing Index has edged down in September to just above the level indicating growth.

Despite being the 16th consecutive month of growth, measures of production, employment and deliveries have weakened, while new orders and exports remain soft.

But the AiG cautions that selling prices are heading higher as raw material costs rise, partly as a result of the drought and higher oil prices. © 2007 Australian Broadcasting Corporation