Australian manufacturing activity contracted over the summer holiday period as the Omicron outbreak caused disruptions. Australian Industry Group’s Manufacturing Index fell by 6.4 points to 48.4 during December and January, representing the challenges around staff availability and further disruptions to supply chains. A reading of below 50 points indicates a contraction of activity. Ai Group Chief Executive Innes Willox said the fall in performance during the two-month period reversed the conditions reported in November when restrictions were eased in the south-east states. “Cost pressures were keenly felt with input prices continuing to rise and the selling prices index indicating only a partial recovery of these costs in the market,” he said. Three of six manufacturing sectors in the index reported positive conditions. The strongest results came from the building materials sector rising 6.5 points to 63.4, indicating a continuing boom in housing construction. In contrast, food and beverages plummeted 19.2 …