The S&P Global Flash Australia Composite PMI fell to 51.1 in December from 52.6 in November, signaling expansion for a fifteenth month but at the softest pace in seven months. Services activity slowed with the Services Business Activity Index at 51.0 versus 52.8, while the Manufacturing PMI rose to 52.2 from 51.6 as goods new orders increased but services new business moderated, leaving overall new export business unchanged as stronger goods exports offset softer services. Business confidence improved to its highest since June and employment continued to rise as firms hired to manage workloads, while backlogs fell for an eighth month led by services despite a rise in manufacturing backlogs. Input cost inflation intensified across both sectors, with goods input costs rising at the fastest pace in eight months, prompting firms to pass on costs as selling price inflation rose to a three month high and matched the long run average.