Judo Bank/S&P Global final manufacturing PMI for August 2024 hits three-month high of 48.5
- before 47.5
Flash reading here:
- Australian August Preliminary PMI: Manufacturing 48.7 (from 47.5) Services 52.2 (from 50.4)
Report commentary, in summary:
- not a manufacturing recession, but a prolonged soft landing
- Capacity constraints in many sectors of the Australian economy are a barrier to manufacturing growth
- above the 50.0 mark for new export orders and a rise in the index of future production to its highest level in 18 months
- New orders and production remain weak, at values below 50.0
- employment has exceeded 50
- Conditions in the manufacturing sector are not deteriorating, although a real recovery remains elusive
- Inflation indicators in the sector deteriorated, with both the input price index (costs) and the output price index (final prices) increasing during the month
- Input prices have maintained indices just below 60 for the past four months
- Final prices rose to an index of 55.0 in August, which, if sustained, will lead to the highest values in more than a year
The price pressures highlighted by the survey support the Reserve Bank of Australia’s view that there will be no rate cuts in the near term.
We will hear from RBA Governor Bullock later this week (Thursday local time):
- Reserve Bank of Australia Governor Bullock to speak twice in coming week
This article was written by Eamonn Sheridan at www.forexlive.com.
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