Ridout warns of tough road ahead for manufacturing

Reserve Bank of Australia board member Heather Ridout says manufacturers are face a long road ahead in adjusting to the presistently high Australian dollar, The Wall Street Journal reports.

According to the newspaper, Ms Ridout said stronger investment figures from the sector would go some way to proving firms had adjusted to the persistently high currency.

"That's a key thing," she said.

"If we can see a sustained upturn in investment . . . we might say that we've made the adjustment, but I don't think that is necessarily apparent yet."

Ms Ridout said as a result of the adjustment process, the "pressure to reduce costs is going to be unrelenting on the industry".