16.12.201908:15:00UTC+00Australia Private Sector Shrinks In December

Australia private sector fell marginally in December, survey results from IHS Markit and Commonwealth Bank of Australia showed on Monday.

The composite output index dropped to 49.4 in December from 49.7 in the preceding month. The latest reading reflected a decline in both services business activity and manufacturing output.

Output decreased for the second month in a row in December. New business rose for the ninth straight month in December with increase centered on the service sector.

Outstanding business rose marginally, but companies lowered their output requirements by reducing the number of workforce. Employment decreased for the first time in five months at the end of the year.

On the price front, the rate of input cost inflation softened in December and selling price increased slightly.

Business sentiment regarding the twelve-month outlook for business activity remained positive.

The services Purchasing Managers' Index fell to 49.5 in December from 49.7 in November. Any score below 50 indicates contraction in the sector.

The manufacturing PMI decreased to 49.4 in December from 49.9 in the prior month. Manufacturers reported the sharpest decline in activity in the 44-month survey history.