The Commonwealth Bank of Australia Services PMI came in at 49.8 in December 2019, little-changed from a preliminary estimate of 49.5 and November's final reading of 49.7. The latest reading pointed to a second straight month of decline in business activity due to drought-related disruptions and subdued sales growth. Employment dropped for the first time in five months amid reports of company restructuring and layoffs. Meanwhile, total new business intakes rose at the fastest rate for three months, supported by a recovery in export orders. On the price front, input costs continued to rise at a marked rate, but charges were up marginally. Finally, business sentiment remained positive, on expectations of an improved economic environment, new product launches, marketing strategies, planned business expansions and better weather conditions. Services Sentiment in Australia averaged 53.34 points from 2016 until 2019, reaching an all time high of 58.40 points in March of 2017 and a record low of 48.70 points in February of 2019. source: Markit Economics
Services Sentiment in Australia is expected to be 50.60 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services Sentiment in Australia to stand at 51.70 in 12 months time. In the long-term, the Australia Commonwealth Bank Services PMI is projected to trend around 52.50 points in 2020, according to our econometric models.