- Prior was 52.5
- Composite PMI 52.6 vs 52.6 prelim
- The fastest expansion in new services export business in three-and-a-half 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.
