Macquarie picks Aussie defensive industrial stocks amid subdued demand

Analysts at Macquarie say the Australia-New Zealand Industrials sectors still show signs of pretty muted demand

However, says businesses that have trimmed costs, improved balance are readied for recovery

Brokerage chooses defensive stocks - Amcor 485.F, Brambles BXB.AX, Cleanaway Waste CWY.AX and James Hardie JHX.AX as its top picks from the local sector

Industrial universe remains very focused on cost reduction and efficiency, especially as market conditions remain tepid - Macquarie

Says Amcor has a solid defensive exposure at an attractive valuation and that Berry BRY.O integration is the key tenet of brokerage's thesis

Macquarie says valuation of Brambles remains attractive given its strong return profile and a "clear intent" to lift returns

Brokerage says Cleanaway's new business continues to increasingly support its outlook

Adds James Hardie can manage any tariff impacts and is flexing its cost base with good effect