The overall health of the Australian factory activity deteriorated in December, with the S&P Global Australia Manufacturing Purchasing Manager's Index decreasing from last month's 49.4 to 47.8, according to a report by S&P Global released on Thursday.

"December’s Australia Manufacturing PMI data outlined a further softening of conditions in the goods producing sector. After showing signs of easing in November, the downturn in the manufacturing sector also worsened at the end of the year, reflecting sustained domestic and external pressures on the goods producing sector," Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence said.