Australia – Judo Bank/S&P Global Manufacturing PMI for August 2024, comes in at three-month high of 48.5
- Previous 47.5
Quick read here:
- Australia PMI Flash August: Manufacturing 48.7 (previous 47.5) Services 52.2 (previous 50.4)
Comment on the report, in summary:
- Not a manufacturing recession, but a prolonged soft landing.
- Capacity constraints in many parts of the Australian economy are acting as a headwind to manufacturing growth.
- New export orders rise above 50.0, future output index rises to 18-month high
- New orders and production remain weak at readings below 50.0.
- Employment has risen to over 50
- Conditions in the manufacturing sector are not deteriorating, although a real recovery remains elusive.
- Inflation indicators in the sector deteriorated, as both the input price index (costs) and the output price index (final prices) rose during the month.
- Input prices have maintained index readings below 60 for the past four months.
- Final prices rose toward an index reading of 55.0 in August, which, if sustained, would be the highest reading in more than a year.
The price pressures evident in the survey support the RBA’s view that interest rates will not be cut in the near term.
We’ll hear from RBA Governor Bullock later in the week (Thursday local time):
- RBA Governor Bullock to speak twice next week
This article was written by Eamonn Sheridan on www.forexlive.com.