15.12.202522:07:04UTC+00Australia Private Secotor Activity Set for 7-Month Low Expansion

In December, the S&P Global Flash Australia Composite PMI registered a decline to 51.1 from November's 52.6, indicating an ongoing expansion for the fifteenth consecutive month, albeit at its slowest rate in seven months. The services sector experienced a slowdown, with the Services Business Activity Index dropping to 51.0 from 52.8, whereas the Manufacturing PMI saw an increase, climbing to 52.2 from 51.6, driven by an uptick in new orders for goods. However, new business in the services sector moderated, resulting in overall new export business remaining unchanged due to robust goods exports balancing out the weaker services performance.

Business confidence hit its peak since June, and employment figures rose as companies continued to recruit to handle their workloads. This was despite a decline in backlogs for the eighth month in a row, primarily in the services sector, although manufacturing backlogs saw an increase. Input cost inflation intensified in both sectors, with the input costs for goods climbing at the swiftest rate in eight months. Consequently, companies passed these costs onto consumers, leading to an increase in selling price inflation, which rose to a three-month high, aligning with the long-term average.