Australia Markit Composite PMI Confirmed At 54.9

The IHS Markit Australia Composite PMI was unrevised at 54.9 in December of 2021, pointing to a slower rate of private sector output growth, however high by historical standards.

Foreign demand for Australian manufactured goods improved while services exports stayed subdued amid border restrictions and COVID-19 Omicron variant fears.

Both manufacturing and service sectors output growth eased, as demand for Australian services improved to push the composite New Orders Index higher.

Expansion of workforce data continued while instances of labour constraints remained. As for prices, input costs across both manufacturing and service sectors rose at record rates.

Manufacturers also passed on these costs to their clients at an unprecedented rate. Overall sentiment remained positive across both the manufacturing and service sectors, though the level of optimism eased across both sectors with concerns that growth may slow due to COVID-19 impacts.