Australian Companies PMI (March, last) 54.4 (prior 53.1)

I used to be lamenting the poor efficiency of the March manufacturing PMI:

No such downside with providers, although, an enchancment on the month, and likewise on the flash studying:

From the report:

  • Output index rising to a
    new cyclical excessive of 54.4. That is the fourth consecutive month of
    enchancment, with the providers output index rising by 8.4 factors,
    the biggest acquire within the sequence exterior of restoration from lockdowns.
  • providers output index is now above its long-run common degree
    of 51.7
  • March 2024 studying is the very best since April 2022,
    when the financial coverage tightening cycle commenced
  • Excellent Enterprise Index rose to its highest degree because the
    Reserve Financial institution of Australia began elevating rates of interest in Might 2022
  • different exercise indicators within the survey have been down barely in
    March, however remained effectively above the impartial 50 index degree
  • Value pressures stay elevated, though there are some indicators of
    a gradual easing over the previous six months
  • enter value index fell
    barely to 61.5, the bottom since 2021, however not a lot decrease than the
    common studying of 62.8 seen by means of the second half of 2023
  • Costs Charged Index remained unchanged at 55.0 in March, a
    little greater than the typical over the previous quarter and broadly in
    line with index readings of the previous 12 months

Excellent news on this report. A niggle is the value pressures, indicating the RBA shouldn’t be going to be slicing any time quickly. Marchket consensus is round September for an preliminary minimize.

This text was written by Eamonn Sheridan at