S&P Global Australian Flash PMIs for January 2025:>
Manufacturing PMI: 49.8
- prior was 47.8
- jumps to a 12- month high
Services PMI 50.4
- prior 50.8
- 6-month low
Composite 50.3
- prior 50.2
- 5-month high
From the reports, comments from Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence:
- “The first set of S&P Global Flash Australia PMI data for 2025 brought positive news with Australia’s private sector remaining in growth territory amid rising services activity, while manufacturing output stabilised after falling for over two years straight.
- “Incoming new orders meanwhile expanded at an accelerated rate, hinting at further growth in the near term. That said, the uptick in new work was underpinned mainly by improvements in domestic demand, as the reduction in export orders, particularly in the manufacturing sector, outlined the uncertainties pertaining to external trade.
- “Rising inflationary pressures observed from these early PMI indicators also outlined a challenging outlook for sales. Not only have rising prices dampened sales thus far according to anecdotal evidence, the potential to keep interest rates elevated for longer also poses a threat to the outlook for growth in 2025. Overall, S&P Global Market Intelligence forecasts growth at 2.1% for Australian GDP in 2025.”
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Final January data are published on 3 February for manufacturing and 5 February for services and composite indicators.
