FX.co ★ Australia Private Sector Posts Softest Growth in Three Months

The S&P Global Australia Composite PMI fell to 52.4 in September, down from 55.5 in August, indicating a year-long trend of monthly growth. However, September marked the slowest expansion since June. The growth in new business showed signs of weakening, partly due to a renewed drop in new export orders. Despite this, companies maintained a strong hiring pace, contributing to a slight reduction in backlogged work. Staffing levels proved resilient even with slower activity growth, a testament to the steady demand for services. Business confidence experienced a slight dip compared to August, as firms remained cautious amidst uncertain market conditions. Although output charges rose at a reduced rate, cost inflation picked up, exerting pressure on profit margins. Nonetheless, the data suggested that Australia's services sector continued its expansion, albeit at a more measured pace.