Preliminary Judo Bank S&P Australian Manufacturing PMI 48.7
- prior 47.5
Services 52.2
- prior 50.4
Composite 51.4
- prior 49.9
The Australian Flash PMI shows improved activity, rising costs in August
- Composite output index up, services sector jumps, manufacturing still weak
- Economy expanding in Q3, labour demand rising
- Service sector input prices hit highest level since March 2023
- Final prices index dipped, suggesting difficulty in passing on costs
- Inflation risks persist despite weak economic growth
- New fiscal stimulus and less restrictive monetary policy raise concerns
- RBA may need to hike further before easing cycle can begin
The bottom line comment, IMO, from the analysis in the report is this:
- Market pricing for RBA rate cuts "perplexing" given current conditions
AUD/USD up a few tics:
