Australian Flash Manufacturing PMI for January leaps higher, almost into expansion

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.”

***

Final January data are published on 3 February for
manufacturing and 5 February for services and
composite indicators.

This article was written by Eamonn Sheridan at www.forexlive.com.