Judo Bank S&P Global PMI Flash / Preliminary for July 2024
While manufacturing is up a touch, services is down. Composite (reflecting both) is down. Not a great report.
Comments from the report, Warren Hogan, Chief Economic Advisor at Judo Bank, in brief:
- Flash PMI report is an early read on Australia’s
economy in July and probably doesn’t capture
the impact of tax cuts and cost-of-living support
measures on household budgets and consumer
spending. This will take some time to flow through
to business conditions but should be expected to
provide a boost over the months ahead. - Employment continued to soften in July, with the
composite employment index just above the 50 index
level. - Official data show that most of the job creation
in Australia over the past year has come from the
public sector and related industries, with the so called market sector employment trends slowing
rapidly in 2024 - while the
demand for labour in many businesses is holding up,
it’s weakest since the start of the pandemic in 2020.
- Weaker activity results are not translating into a
notable fall in inflation pressures across the business
community.
