22.09.202310:36:00UTC+00Australian Private Sector Recovers In September

Australia's private sector activity signalled a renewed expansion in September, driven by an improvement in the service sector, flash survey results from S&P Global showed on Friday.

The Judo Bank flash composite output index rose to 50.2 in September from 48.0 in August. A score below 50 indicates expansion in the sector.

The growth trend was driven primarily by improvements in the service sector, as manufacturing sector output fell at a faster rate in September, the survey said.

The services purchasing managers' index climbed to a 4-month high of 50.5 in September from 47.8 in the previous month.

At the same time, the manufacturing PMI dropped to a 3-month low of 48.2 in September from 49.6 in August.

Greater client interest pushed up overall new orders in the Australian private sector, and employment levels also rose.

On the price front, input costs remained unchanged, but firms raised their selling prices at a slower rate amid a reduced confidence in future production.

"While the jump in key indicators points to economic resilience and inflation stickiness, the RBA Board is expected to remain patient at the first meeting of new Governor Michele Bullock," Warren Hogan, chief economic advisor at Judo Bank, said.

"If economic data fails to slow in line with the RBA forecasts, the Board may need to respond with a further tightening of monetary policy later this year, most likely in early November on Melbourne Cup day."