Manufacturers upbeat but energy a concern

Manufacturers have capped off an improved performance this financial year but rising energy costs are taking their toll.

The Australian Chamber of Commerce and Industry-Westpac survey of industrial trends for the June quarter says state infrastructure spending, stronger world growth, spillovers from mining and agriculture and a low Australian dollar have all helped to buoy the sector.

"Even so, there are some negatives: consumer spending is constrained by slow wage growth, energy costs are up and overseas competition is intense," Westpac senior economist Andrew Hanlan said releasing the report on Thursday.