Australian preliminary PMIS from IHS Markit / S&P Global for July:
- Manufacturing PMI 55.7 (prior 56.2)
- Services 50.4 (prior 52.6)
- Composite 50.6 (52.6)
S&P Global Market Intelligence analyst remarks:
“Australia’s private sector economy expanded for a sixth consecutive month in July, according to the S&P Global Flash Australia Composite PMI. However, latest survey data has pointed to a further deceleration in the rate of private sector growth. Panellists suggested that interest rate increases, alongside persistent inflationary pressures, have been a pivotal factor contributing to the weakened private sector improvement this month. Further interest rate increases by Australia’s central bank present a downside risk to the private sector, with sentiment slipping to a 27-month low.
“On the positive side, employment levels continue to rise at a solid pace. Firms also continue to report challenges in filling vacancies, indicating that we can hope to see continued improvement in workforce numbers in the coming months as staffing levels are rebuilt.”
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Rate increase, inflation pressure, labour market tightness. All familiar themes. Supply chain issues do seem to be dissipating though according to these comments.
AUD little changed.