The manufacturing sector in Australia experienced an accelerated decline in December, as indicated by Judo Bank's recent survey, which reported a manufacturing PMI of 48.2. This figure has decreased from November's 49.4, pushing further below the neutral threshold of 50 that distinguishes expansion from contraction.
Meanwhile, the services index slightly decreased to 50.4 from 50.5 the previous month. The composite index, however, moved into contraction territory, registering at 49.9 compared to 50.2 in November.
Throughout December, there was a marginal decrease in business activity, as the deceleration in service sector growth was insufficient to counterbalance the sharper downturn in manufacturing production. Manufacturers cited adverse market conditions impacting operations within the goods-producing sector, accounting for the decline in output. Conversely, the growth in service activity was among the weakest observed over the past 11 months, matching the levels seen in July.
This decline in business activity occurred amidst a backdrop of slowing new business growth. The seasonally adjusted New Orders Index reached its lowest point in three months, indicating only a modest increase in new work orders.
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