Last week we got some encouraging signs from the manufacturing and services PMIs:
- Australia - AIG Performance of Manufacturing index for August: 51.7(prior 50.4)
- Australia - August Services PMI: 55.6 (prior 54.1)
And a jump from the PCI now, of 6.7points to be back into expansion
Key Findings for August:
- Expanded in August for the first time since October 2014
- After all four sub-indexes contracted in July, three returned to expansion in August: construction activity (up 5.2 points to 52.8); new orders (up 12.2 points to 57.6); and employment (up 7.5 points to 55.0.
- Supplier deliveries spent a fifth month in contraction (down 2.9 points to 46.1).
- In residential construction, apartment building activity remained solid on the back of July's 11-month high (down 3.3 points to 58.7), while house building expanded from July's stability (up 4.4 points to 54.4).
- Engineering construction activity continued to contract, if at a slightly slower rate than in July (up 2.9 points to 45.9)
- Commercial construction returned to growth (up 9.4 points to 54.6)
- Growth in the wages sub-index continued in August after its seasonal spike in July (down 3.8 points to 58.9)
- Growth in input costs eased slightly (down 3.3 points to 66.8) but pressures on profits remain intense with the wide gap remaining between the wages and input sub-indexes and the selling prices sub-index, which was broadly unchanged at 48.0