Oz manufacturing shrinks at record pace

Australian manufacturing contracted at a record pace last month as companies received fewer orders, fired workers and cut production.

The performance of manufacturing index fell 4.9 points to 31.7, the lowest level since the series began in 1992, the Australian Industry Group and PricewaterhouseCoopers said in a report released in Canberra. A reading below 50 signals manufacturing is shrinking.

Yesterday's report adds to speculation Australia's economy may follow the US, Europe and Japan into a recession amid waning global demand for resources and a slump in consumer confidence.