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):
