02.01.202405:34:00UTC+00Australia Manufacturing Activity Contracts Most Since May 2020

Australia's manufacturing sector deteriorated at the fastest pace in more than three-and-a-half years in December, largely due to weaker demand conditions in both the home and foreign markets, survey data from S&P Global showed on Tuesday.

The Judo Bank Manufacturing Purchasing Managers' Index fell to 47.6 in December from 47.7 in November.

Any score below 50 indicates contraction in the sector. Further, activity fell for the tenth successive month in December.

As a result of reduced new work intakes, December's production decreased. The reduction in output was accompanied by a decline in employment, purchasing activity, and input inventory holdings.

On the price front, input prices rose at a faster rate in December amid rising raw material and fuel costs. As a result, manufacturers raised selling prices at a quicker pace to cover costs.