The Purchasing Managers’ Index (PMI) has shown that the private sector returned to growth last December, with renewed increases in output and new orders recorded in the face of a recovery in demand.
The 28.2 per cent inflation rate in November was the 11th straight month of increase and the highest level in 18 years.
The private sector growth occurred despite continued intense inflationary pressure, with purchase costs and selling prices each rising at sharper rates than in November.
The PMI report indicated that business confidence dropped to the joint-lowest in the decade.
The headline figure derived from the survey is the PMI, which says readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show a deterioration.
The headline PMI moved back above the 50 no-change mark for the first time in three months at the end of 2023, posting 52.7 in December from 48 in November.
The reading signaled a solid improvement in the health of the private sector and one that was the most marked since June.
Demand conditions showed signs of recovery, leading to a marked increase in new orders following two months of contraction.
