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Growth of Australia's Manufacturing Sector Slows in December: IHS Markit

Wahyu Dwi Anggoro - 04 January 2022 11:09 WIB
Growth of Australias Manufacturing Sector Slows in December: IHS Markit
IHS Markit forecasts for Australia’s GDP to expand by 2.7% in 2022.
Canberra: Growth of Australia’s manufacturing sector slowed in December, according to the latest IHS Markit PMI™ data. 

The seasonally adjusted IHS Markit Manufacturing Purchasing Managers’ Index™ (PMI®) posted above the 50.0 no-change mark at 57.7 in December, down from 59.2 in November, to signal an expansion of the Australian manufacturing sector. 
This marks the nineteenth straight month in which the sector grew, though the rate of growth slowed to a three-month low. 

"Some growth momentum was lost for the Australian manufacturing sector in December as the reopening boost faded and supply constraints hampered production according to panellists," IHS Markit Economics Associate Director Jingyi Pan said in a press release on Tuesday.

"While some green shoots are spotted with regards to supply constraints, such as in the form of suppliers’ delivery times lengthening at a slower rate, price
pressures have continued to worsen. This invited some concerns from manufacturers in December and will be worth watching into the new year," the IHS Markit economist stated.

Nonetheless, Australia's current growth momentum remains strong by historical standards and firms have maintained an optimistic view with regards to future output. 

IHS Markit forecasts for Australia’s GDP to expand by 2.7% in 2022.

(WAH)

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