Australia’s Judo Bank Services PMI misses expectations, declines to 47.1 versus 47.6 expected


  • Judo Bank’s Australian Services PMI sinks to second-lowest print in 23 months.
  • Australian Composite PMI also slipped to 46.9 from 47.4.

The Australian Services sector contracted once more, according to the latest Purchasing Managers’ Index (PMI) data from Judo Bank.

Despite the seasonally-adjusted figure rising from November’s 46.0 to 47.1 in December, a third consecutive reading below 50.0 points towards a full quarter of services activity contraction.

This marks the fastest pace of services contraction since the third quarter of 2021.

According to Matthew De Pasuale, Economist at Judo Bank: “The composite output index ended the year with a reading of 46.9, a slight improvement from November. Readings over the past two months suggest that while the economy is slowing down, the slowdown is not accelerating. The new orders index softened for the third consecutive month to 46.7 in December, the lowest level since late 2021. Despite households facing ongoing pressure from elevated interest rates, the output and new order indexes remain at levels consistent with the RBA's forecast soft-landing for the Australian economy.”

Market reaction

The Australian Dollar is broadly unmoved by the figures, with the AUD/USD cycling the 0.6730 level with an ongoing economic downturn in the domestic Australian economy broadly priced into market expectations already.

About the Judo Bank Services PMI

The Services Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging business activity in Australia’s services sector. The data is derived from surveys of senior executives at private-sector companies from the services sector. 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), employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for AUD.
 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains below 1.0900 ahead of NFP

EUR/USD consolidates weekly gains below 1.0900 ahead of NFP

EUR/USD stays in a consolidation phase and trades below 1.0900 in the European session on Friday. Investors move to the sidelines while waiting for the US October employment report, which will highlight Nonfarm Payrolls and Unemployment Rate figures.

EUR/USD News
GBP/USD stabilizes near 1.2900, eyes on US employment report

GBP/USD stabilizes near 1.2900, eyes on US employment report

GBP/USD holds steady at around 1.2900 early Friday after closing deep in the red on Thursday. Despite the persistent USD weakness, the risk-averse market atmosphere didn't allow the pair to gain traction. Investors await US NFP data.

GBP/USD News
Gold recovers above $2,750 as traders brace for US NFP data

Gold recovers above $2,750 as traders brace for US NFP data

Gold recovers some lost ground and trades above $2,750 on Friday. The uncertainties surrounding the US presidential election and the ongoing geopolitical tensions in the Middle East provide some support to the precious metal, a traditional safe-haven asset. 

Gold News
US Nonfarm Payrolls Forecast: NFP October report set to show slower job growth

US Nonfarm Payrolls Forecast: NFP October report set to show slower job growth

US Nonfarm Payrolls are expected to rise by 113K in October after September’s stellar gain of 254K. The United States Bureau of Labor Statistics will release the labor data on Friday at 12:30 GMT. The US Dollar’s fate and the Fed’s future interest rate cuts hinge on the US jobs data.

Read more
Bank of Japan holds rates steady amid signs of modest GDP growth

Bank of Japan holds rates steady amid signs of modest GDP growth

Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures