Australian final Service PMI (September) 51.8 (vs. prior 47.8)

S&P Global/Judo Bank services and composite PMIs are strong for September.

From the commentary to the report (in brief):

  • a surge in output driven by a lift
    in services sector activity
  • continued stability of
    PMI price indices, especially input prices, suggests that inflation
    will remain high and uncomfortable for the rest of 2023
  • the magnitude of the increase suggests that
    services sector activity is proving resilient to higher interest
    rates
  • Sticky inflation and resilient services sector activity, evidenced
    by both the Judo Bank PMIs and official economic data releases,
    pose the question of whether the economy is slowing down
    enough to achieve the soft-landing forecast by the RBA
  • Labour demand continues to prove resilient across both
    sectors, with the composite employment index rising slightly
    in September, well into expansion territory.
  • The service sector is experiencing persistently high input cost
    inflation that exceeds pre-pandemic levels. The index rose
    slightly to 62.6 in September and has held close to this level for
    the past six months. With consumer demand proving more
    resilient in the services sector, elevated input cost pressures will
    likely keep upward pressure on final prices for the remainder of
    2023.

Preliminary and priors are here:

The manufacturing PMI for September:

AustralianFinalPMIpriorSeptemberService
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