Economic Buzz: Australia Private Sector Output Growth Slows In December

6 Jan 2022 , 09:18 AM

Australias service sector continued to expand in December, according to the latest IHS Markit PMI data, though the rate of growth slowed. The seasonally adjusted Business Activity Index fell to 55.1 in December from 55.7 in November, signalling a slower expansion. That said, the rate at which business activity rose remained at a level above the 2021 average to indicate solid growth post the easing of COVID-19 restrictions, according to panellists. The easing of COVID-19 restrictions nevertheless enabled overall new orders to rise at a stronger rate in December, driving higher employment levels and contributing to increased backlogged work. Price pressures further accumulated with record input price inflation seen while business confidence slipped in the final month of 2021. The Composite Index, which measures combined services and manufacturing output, eased to 54.9 in December from 55.7 in November. This indicated a slower rate of private sector output growth, though the rate of growth remained at a level above the series average.

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