Australia: Composite PMI improves in December
The Judo Bank Australia and S&P Global Composite Purchasing Managers’ Index (PMI) rose to 46.9 in December from November’s 46.2. Consequently, the index remained entrenched below the 50-threshold, pointing to deteriorating business activity from the previous month.
The Manufacturing PMI came in at 47.6 in December, down from November’s 47.7. New orders fell more heavily in December, which translated into a more pronounced contraction in output. Moreover, jobs were shed at a faster clip in the month. On the prices front, input cost and output price inflation intensified. However, business sentiment improved amid hopes of rising sales in 2024.
The Services PMI rose to 47.1 in December from 46.0 in November. The increase in the headline print was driven by faster growth in employment. That said, orders fell at the sharpest pace since September 2021. Meanwhile, input price inflation softened, while output price inflation accelerated. Lastly, business confidence strengthened amid hopes of increasing sales in the year ahead.