By James Glynn
SYDNEY--Australia's private sector recorded a fifth straight month of growth in June, but the pace of expansion slowed.
The S&P Global Flash Australia Composite Output Index eased from 52.9 in May to 52.6 in June, a five-month low.
Private sector output and new orders continued to expand at solid rates, leading to a continued expansion in Australia's workforce.
Meanwhile, supply constraints persisted, contributing to a further accumulation of backlogged work. Inflationary pressures remained severe and among the highest on record. Overall business confidence remained positive, but eased to the lowest in over two years.
The data coincide with a decision by the Reserve Bank of Australia to raise official interest rates by 50 basis points in June, adding to a 25 basis-point increase in May.
The RBA continues to issue warnings about the inflation outlook, and economists expect further interest-rate increases through the second half of this year.
The overall easing in output growth in June was underpinned by a slowdown in the service sector, the PMI data showed.
Write to James Glynn at James.Glynn@wsj.com
(END) Dow Jones Newswires
06-22-22 1949ET
