Australia preliminary manufacturing PMI December slumps to 48.2 (prior 49.4 ) | Forexlive

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

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.