Australia's Judo Bank December Composite PMI hits a two-month high of 47.4 versus November's 46.2

According to S&P Global's Preliminary Judo Bank Australia Purchasing Managers' Index (PMI), the December flash Composite PMI climbed to a two-month high of 47.4 compared to November's thirteen-month low of 46.2.

Key Highlights

Flash Australia Composite PMI Output Index: 47.4 (Nov: 46.2)

Flash Australia Services PMI Business Activity Index: 47.6 (Nov: 46.0), 2-month high

Flash Australia Manufacturing PMI: 47.8 (Nov: 47.7), 2-month high

All three sectors of the December preliminary PMI (Composite, Manufacturing, and Services) hit a two-month high, with all three datapoints remaining in contraction territory below 50.0.

According to Warren Hogan, Chief Economic Advisor at Judo Bank:

Market Reaction

The AUD/USD is caught in tepid trading conditions near the 0.6700 handle as markets head into the early Friday Asia market session.

About the Judo Bank Composite PMI

The Composite Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging private-business activity in Australia for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the Australian private economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for AUD.