The NAB Manufacturing Activity Index eased further in the second quarter of the year, remaining in negative territory – despite some divergent trends in individual sub-sectors.

It implies declines in quarter-on-quarter growth in the manufacturing sector – which continues to be burdened by global uncertainty and the strong dollar.

The activity index was down to -0.6 points from -0.4 points in March driven largely by declines in both Business Confidence and final prices growth.

Business confidence declined from around -3 points in the first quarter to -5 points in the second quarter, a trend that was broadly in line with those of the broader economy.

The largest declines in confidence were recorded in the metal products, machinery and equipment and chemicals sectors.

This article first appeared at SmartCompany.