Australia preliminary February PMI: Manufacturing 50.1 (prior 50), Services 49.2 (48.6)

Australian flash PMIs for February 2023 via Judo Bank / S&P Global

Manufacturing 50.1

• prior 50.0 in January

Non-manufacturing 49.2

• prior 48.6

Composite 49.2

• prior 48.5

Some of the comments from Warren Hogan, Chief Economic Advisor at Judo Bank:

• “We still appear to be on the narrow path to achieve a soft landing Soft landing A "soft landing" in the economy refers to a situation where economic growth slows down, but does not fall into a recession. This is often the desired outcome for policymakers, as it allows them to make adjustments to the economy without causing widespread job losses or other negative effects associated with recessions.An example of a soft landing in the economy occurred in the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised interest rates to cool do A "soft landing" in the economy refers to a situation where economic growth slows down, but does not fall into a recession. This is often the desired outcome for policymakers, as it allows them to make adjustments to the economy without causing widespread job losses or other negative effects associated with recessions.An example of a soft landing in the economy occurred in the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised interest rates to cool do Read this Term for the economy in 2023.
• “Labour demand also eased in February across both the services sector and manufacturing industries. Overall labour demand remains in positive territory consistent with the hoarding of labour as the economy slows. This should keep unemployment low even as economic policy makers induce a necessary economic slowdown in 2023/24.
• “Prices pressures eased further in the service industries yet remain elevated, while manufacturing price indicators barely moved in February. Despite the moderation, the price indicators continue to point to above target inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term in 2023.
• “The February numbers highlight a further improvement in supply chain function within the Australian economy.
• “At this stage the Judo Bank PMIs are pointing to a welcome slowdown in the economy that may help take upward pressure off interest rates. While this will do little to alter the RBA’s intentions to raise interest rates further over the months ahead, it does indicate that we may be close to the point where the RBA Board can pause the current tightening cycle.”