- Prior was 52.5
- Composite PMI 52.6 vs 52.6 prelim
- The fastest expansion in new services export business in over three years
- Central to the latest upturn in services activity was rising
new business inflows
Jingyi Pan, Economics Associate Director at S&P Global
Market Intelligence
“November’s S&P Global Australia Services PMI
indicated that growth of services activity accelerated
from the prior month, providing positive news for
overall economic output given the renewed rise in
manufacturing output. The latest expansion in services
activity was notably supported not only by higher
domestic demand but also by a marked improvement
in international demand, with reports of rising tourism
activity.
“Employment growth softened noticeably over the latest
survey period, but this was attributed largely to hiring
challenges with service providers still signalling the
intent to raise staffing levels to cope with rising demand.
“On the price front, service providers continue to face
pressure on their margins, as the muted rise in charges
contrasted sharply with a steep increase in input prices.”
That last line about input prices is worrisome. The survey linked higher cost
inflation to increased expenses related to energy, input
materials and wage.
Australian GDP data is due up later. The market sees a dwindling chance of rate cuts and a roughly 50/50 chance of a hike next Sept.
This article was written by Adam Button at investinglive.com.