Australian industrial activity continued to fall in April, with uncertainties related to trade and elections adding more strain to trade-exposed manufacturing industries, Ai Group said in a report Wednesday.

The Ai Group Australian Industry Index eased 5.1 points to negative 15 in April. The index has been in contraction territory for the last 34 months.

The activity/sales, new order, and average wage indicators improved, while the employment, input volumes, input prices, and sales prices declined.

Respondents observed slower activity in the lead-up to the federal election, as well as continued cost-of-living pressures, per the report.

The Australian Purchasing Managers' Index (all manufacturing) improved by 3.7 points to negative 26.5. Aside from pre-election uncertainty, some manufacturers lamented the impact of currency fluctuations on competition.

The Australian Performance of Construction Index improved 10.8 points to negative 7.9.