Australia's Manufacturing Continues To Contract, As Exports Collapse

Australia's AIG-performance of manufacturing index climbed to 48.6 in February, from 46.7 the previous month.

But the below-50 reading shows Australian manufacturing is still contracting.

The employment sub-index also fell to 47.4, from 48.3.

What's more, the crucial exports sub-index collapsed to 25.8, from 34.1.

It's possible that China's Lunar Year holiday could have had an impact on the exports sub-index. China is Australia's largest export market.

But one positive detail from the report was the improvement in new orders, which climbed to 50, from 48.8 in January.