Australia Final manufacturing PMI from Judo Bank / S&P Global for August 2024, comes in at the highest level in three months @ 48.5
- prior 47.5
Flash reading here:
Commentary from the report, in summary:
- not a manufacturing recession, but an extended
soft landing - capacity constraints
across many parts of the Australian economy are acting as
a headwind to growth for manufacturing - above the 50.0 mark for new export orders and a
jump up in the future output index to the highest level in 18
months - new orders and output remain soft at readings below 50.0
- employment rose above 50
- conditions in the manufacturing sector are not
deteriorating, although a genuine recovery remains elusive - inflation indicators in the sector worsened, both the input price index (costs) and the output price index
(final prices) rising during the month - input prices have sustained index readings just under 60
over the past four months - final prices rose towards a 55.0 index reading in August,
which, if sustained, will lead to the highest readings in more
than a year
Those price pressures evident in the survey are supportive of the no near-term rate cut view of the Reserve Bank of Australia.
We’ll hear from RBA Governor Bullock later in the week (Thursday local time):
This article was written by Eamonn Sheridan at www.forexlive.com.
