Soft data remains weak.
Flash Australia Composite PMI Output Index: 48.1 (Dec: 46.9), 4-month high
Flash Australia Services PMI Business Activity Index: 47.9 (Dec: 47.1), 3-month high
Flash Australia Manufacturing PMI Output Index: 49.2 (Dec: 45.5), 5-month high
Flash Australia Manufacturing PMI: 50.3 (Dec: 47.6), 11-month high
Australia’s private sector activity continued to decline at the start of 2024. That said, the pace of reduction eased alongside a slower fall in new business. This was amidst improvements in business sentiment while employment levels also continued to rise. Selling price inflation notably eased to a 34-month low in January.
Incoming new business continued to fall at the start of the year, but the pace of contraction moderated to the slowest since new orders began decreasing last October. Softer new business declines in both the manufacturing and service sectors underpinned the latest change. A similar picture was seen for foreign demand, as new export business fell only slightly in January.
Rate cuts coming.
