CBA / Markit PMIs from Australia for December
- Services comes in at 55.1, from 54.0 prior
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- Composite 55.5 , from prior 54.3
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Markit / CBA on the 'key findings':
- Output growth in the Australian service sector gathered further momentum during December, with the pace of expansion accelerating to the quickest since July.
- New orders grew at a slightly faster pace, while the rate of backlog accumulation accelerated to a seven-month high.
- However, confidence eased to the lowest since May, while job creation slowed.
- Meanwhile, output price inflation climbed to a survey peak, reflecting increased input costs.
Comment on the data from CBA Chief Economist, Michael Blythe:
- "The combination of strong and rising services activity at the end of 2017 indicates that the Australian economy will enter 2018 with a respectable momentum behind it. Robust readings in the New Business Index and the Business Expectations Index support this view". Mr Blythe added: "The large lift in the Outstanding Business Index at the end of 2017 suggests capacity constraints are biting more sharply. The robust demand reported by panellists that is driving capacity pressures is putting pressure on labour costs and output prices. These developments will bear careful watching."
More good data, following the strong manufacturing PMIs out earlier this week:
