1. Safety net shunned for investor protection
  2. Budget tax win over losses
  3. Spain tumbles back into recession
  4. Two-speed economy to widen
  5. Slower inflation gives RBA room for a 25-point cut, say economists
  6. IMF warns resource prices on way down
  7. Investment boom 'at peak'
  8. China manufacturing posts another monthly gain
  9. Bernanke flags continued low rates to boost jobs
  10. Retail investors the key to $40bn growth
  11. Apple taps cash stash for investor payout
  12. IMF chief cautiously upbeat on global economy
  13. Signs of Europe recovery offset by China weakness: OECD
  14. Greece closes critical debt deal with creditors
  15. ANZ expands in China with local currency products
  16. Less gold mined last year, but it was worth more
  17. Woolies to invest $2bn
  18. Coles to put hotels on the block
  19. Telstra signs up for NBN fibre-optic superhighway
  20. Interest rates where they should be: RBA
  21. Costco's $140m stores plan
  22. Banks face dividend hit, says Westpac as funding crunch threatens payouts
  23. Obama backs Buffet rule, higher taxes on oil industry and private equity
  24. Cautious economists tip US economy to surprise on upside
  25. Greeks seal fresh austerity deal, eurozone ministers mull debt restructure
  26. IMF shaves growth estimates for China from 9pc to 8.25pc
  27. A coin toss, but RBA likely to cut rates
  28. Retail sales drop 0.1pc in December: ABS
  29. Westpac CEO Kelly defends job cuts, refuses to comment on passing on rate cuts
  30. ANZ treasurer sees positive signs in eurozone despite funding troubles
  31. First-half results for some sectors tipped to be a bloodbath
  32. Woodside kicks off $1bn Browse sale as plans for processing plant may be axed
  33. 35,000 jobs at risk as advice reforms bite
  34. Finance sector faces big squeeze with low credit growth and high dollar
  35. Deadlocked Greek debt negotiations threaten to delay key bailout talks
  36. Beijing to stimulate economy as growth heads below 9pc
  37. ECB president Mario Draghi more upbeat as holds rates
  38. Merkel, Sarkozy up pressure on Greece, agree to push financial transaction tax
  39. Retailers made to work hard for the money by post-Christmas shoppers
  40. Manufacturing expands in December despite weak demand
  41. ECB pledge to help banks as funding pressures rise
  42. Europe crisis to hit home as liquidity dries up, says Wesfarmers
  43. JB Hi-Fi warns of earnings slump
  44. Euro banks on brink in funding crisis as collateral crunch threatens system
  45. Europe banks face $150bn capital shortfall
  46. Standard and Poor's warns of mass eurozone downgrades
  47. Rate prospects unclear as euro rescue develops
  48. CBA, Macquarie say Standard and Poor's downgrade won't affect funding
  49. Fitch lowers outlook on US to negative, affirms triple-A status
  50. Telstra chief overhauls Telstra for NBN game
  51. Leaders must 'hurry up' and solve Europe crisis: RBA's Stevens
  52. Hopes fade for US supercommittee deal on deficit reductions
  53. Risks of global recession mount
  54. U.S. Banks Face Contagion Risk From Europe Debt
  55. Greece Starts Talks With Banks on Debt Swap
  56. BHP's shale gas payoff
  57. Branded wines 'hard pressed'
  58. EU warns of recession through 2012
  59. Italian bonds hit record as Berlusconi fights for survival
  60. Emissions: who comes clean?

Manufacturing expands in December despite weak demand

January 03, 2012

AUSTRALIA'S manufacturing sector expanded slightly in December, but the strong Australian dollar and weak demand continued to take their toll, a performance gauge produced by an industry group showed today.

The Australian Industry Group-PricewaterhouseCoopersAustralian Performance of Manufacturing Index rose 2.4 points in December from November to 50.2 points. Readings above 50 indicate an expansion in activity.

Basic metals, paper, printing and publishing as well as transport equipment all gained in the month, offset by a decline in fabricated metals, chemicals, petroleum and coal products and construction materials.

Manufacturers' profitability during December was squeezed by rising wages and input prices, while selling prices declined.

"The majority of the sub-sectors recorded declines, highlighting the continuing impact the high dollar, soft domestic demand and the uncertainty in the global economy are having on the industry," said Heather Ridout, chief executive of the Australian Industry Group.

"Therefore, while the tentative pick-up in manufacturing activity is encouraging, clearly the sector remains vulnerable to any renewed downturn in the global economy and to the underlying structural pressures associated with strong commodity prices."

Article by Geoffrey Rogow From: Dow Jones Newswires