The manufacturing sector continued to contract in October, hurt by a strong currency and labour shortage, though the pace of decline in the sector has slowed from previous months, a performance gauge produced by an industry group shows. 

The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index rose 2.1 points in October from September to 49.4.

Sharp falls in textiles were blamed on weak consumer confidence and a shortage of skilled workers, especially in Western Australia, while food, beverages and wood products were also hurt.

The best performing factories were in the areas of clothing, footwear and machinery.