Dollar weak but exports still down

Results from an Australian Industry Group (AiG) survey say 2008 will be a slow export year for Australian manufacturers. Compiled from 500 responses last month, the survey suggests that the home market will be more important than exports this year.

"Domestic demand is going to be the source of growth, and if that comes off because of international impacts, that will be very damaging to the industry's prospects," reports Heather Ridout, chief executive of AiG.
 
Ridout says the federal government will need to review its trade policy in light of the strong Australian dollar, despite the fact that it dropped below US86c overnight, for the first time this year.
 
Threat of a US recession has affected expected export growth, down from 3.4 percent to less than one percent.