sydneyaustralian business output contracted for a fourth straight month in january as the impact of sharp interest rates increases since may last year weakens confidence across the economy the judo bank flash australia composite pmi output index climbed from 475 in december to 482 in january while private sector output continues to contract the pace of the retreat was the slowest in three months the fall in output was led by softer service activity and lower manufacturing production the data showed new orders rose for the first time since september 2022 underpinned by better service sector performance judo bank said the reserve bank of australia is expected to raise interest rates a ninth consecutive time in february as it moves to tame the worst inflation pressures seen since the 1980s despite the contraction in output firms hired at a solid rate in january manufacturers and service providers alike increased their workforce capacity to address labor shortages the flash australia services pmi business activity index rose to 483 in january from 473 in december a threemonth high according to judo bank