S&P Global: Australia’s private sector contracts in Sep. ’24

Australia’s private sector experienced a decline in business activity during September, primarily due to a sustained downturn in manufacturing, according to the latest report published by S&P Global on Monday.

Despite some challenges, new business continued to grow, and a positive outlook led to an increase in staffing. Moreover, price pressures decreased as input costs fell, enabling firms to raise selling prices at the slowest rate since December 2020.

The Judo Bank Flash Australia Composite PMI Output Index fell to 49.8 in September from 51.7 in August. This indicates a marginal decline in business activity, as slower growth in the services sector failed to offset a sharper downturn in manufacturing production.

While the manufacturing sector struggled, new business growth in the services sector helped to support overall new business expansion. This positive outlook led to an increase in workforce capacity in September, although this was mainly limited to the service sector.

Attribution: S&P Global PMI report

Subediting: M. S. Salama