The PMIs slowed a little in July, data is here ICYMI:
Still expanding, just more slowly.
- Softer new order growth
- a reduction in new export orders … manufacturers posting a decline for the third time in the past four months
- slower rise in new orders
- softer accumulation of backlogs of work
- Outstanding business increased at the weakest pace in five months … manufacturers posted a decrease for the third time since April
And, this, bolding mine:
- Employment decreased for the first time since April, and to the greatest extent since the survey began in May 2016. The overall reduction was centred on the service sector, while manufacturers continued to see job creation.
ICYMI, the RBA is focused on the jobs market, wanting to see unemployment around 4.5% from its current 5.2% The Bank lowered its cash rate in June and again in July in effort to drive this forward.
The employment indication in this report from CBA/Markit, while mixed (services down, manufacturing up) will be a nigle for the RBA. Fowrad indicators for the labour market have turned for the worse.
AUD lower:
