(RTTNews) - The manufacturing sector in Australia continued to contract in December, and at a faster pace, the latest survey from Judo Bank revealed on Monday with a manufacturing PMI score of 48.2.
That's down from 49.4 in November and it moved further beneath the boom-or-bust line of 50 that separates expansion from contraction.
The services index eased to 50.4 from 50.5 a month earlier, while the composite index slipped into contraction at 49.9 - down from 50.2 in November.
Business activity fell fractionally in December as slower services activity growth failed to offset a sharper downturn in manufacturing production. Where lower manufacturing output was reported, manufacturers indicated that deteriorating market conditions affected operations in the goods producing sector. Services activity growth was meanwhile the joint-softest in the current 11-month sequence, equal with that seen in July.
The reduction in business activity took place against a backdrop of softening new business growth. The seasonally adjusted New Orders Index posted the lowest reading in three months to signal only a modest rise in new work inflows.
