Manufacturers see business lift

Manufacturers are turning to the domestic market to maintain output, given the local economic climate compared to that of Australia's major export destinations. The Australian Industry Group's latest Performance of Manufacturing Index showed strengthening activity through 2001, and with the recent cut in interest rates stimulating demand and encouraging investment, the domestic outlook is increasingly positive.

"The increasing pressure to rebuild stocks and signs of improving orders both point to strengthening activity throughout the rest of the year," AIG deputy chief executive Heather Ridout said. To take advantage of the positive business conditions and build growth, manufacturers are looking to improve capacity utilisation and productivity in their factories.