Markit's makes 'key points' from the results:
- Demand and output growth expand at slower rates
- supply constraints persist
- Input cost and output price inflation surge to record levels
And the commentary from the report elaborates:
- 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.
- 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.
- That said, 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.
