FX.co ★ Australia Private Sector Seen Expanding for 14th Month

In November, the S&P Global Flash Australia Composite PMI increased to 52.6, up from 52.1 in October, indicating economic growth for the fourteenth consecutive month, with noticeable improvement. The services sector showed acceleration, as the Services Business Activity Index rose to 52.7 from 52.5. Additionally, the Manufacturing PMI increased to 51.6, from 49.7, as new orders for goods returned to growth for the first time since August. This growth, combined with improved new business in the services sector, contributed to a slight rise in overall new export business, despite a sharper decline in demand for goods exports. Business confidence reached a five-month high, and employment continued to grow, albeit at the slowest rate in ten months. This sluggish employment growth can be attributed to the hiring challenges faced by service sector firms, resulting in further declines in backlogs. Inflation in input costs increased, driven by higher material, energy, and wage expenses. The services sector experienced more significant cost increases, while manufacturing saw input prices rise at a slower pace. Additionally, selling price inflation edged up from October’s five-year low.