Australia Judo Bank / S&P Global data. For December 2024.
Preliminary / Flash Australia Manufacturing PMI: 48.2
- November was 49.4
- December's 48.2 is a 2- month low.
Flash / Preliminary Services PMI 50.4, a 5-month low
- November was 50.5).
Flash / Preliminary Australia PMI Composite, 3-month low
- November was 50.2, 3-month low
In brief, the main points from the report:
- Overall Business Activity: The Composite shows a slight contraction in private sector output; PMI at 49.9, down from 50.2 in November, the lowest in three months.
- Sector Performance:
- Manufacturing output declined sharply due to worsening market conditions.
- Services activity growth slowed to the joint-weakest level in 11 months.
- New Orders:
- Growth in new business softened; manufacturing orders declined at the fastest pace since October.
- Domestic demand supported growth, but export business fell at a sharper pace.
- Capacity and Employment:
- Backlogs of work declined, indicating no capacity pressures.
- Employment dropped marginally for the first time since August 2021, led by declines in services.
- Business Confidence:
- Optimism improved to the highest level since May 2022, driven by hopes for lower interest rates and business development in 2025.
- Cost and Price Pressures:
- Input costs rose faster, driven by material, labor, and transportation expenses.
- Selling price increases remained muted as firms absorbed some costs to stay competitive.
- Policy Outlook:
- Muted inflation and softer business conditions may support interest rate cuts, though rising cost pressures require monitoring.
This reflects a mixed economic picture, with challenges in manufacturing offsetting modest growth in services, alongside rising optimism for the future.
Final December data will be published on 2 January for manufacturing and 6 January for services and composite indicators.