Judo Bank S&P Global PMI Flash / Preliminary for July 2024
While manufacturing is up a touch, services is down. Composite (reflecting both) is down. Not a great report.
Comments from the report, Warren Hogan, Chief Economic Advisor at Judo Bank, in brief:
- Flash PMI report is an early read on Australia’s economy in July and probably doesn’t capture the impact of tax cuts and cost-of-living support measures on household budgets and consumer spending. This will take some time to flow through to business conditions but should be expected to provide a boost over the months ahead.
- Employment continued to soften in July, with the composite employment index just above the 50 index level.
- Official data show that most of the job creation in Australia over the past year has come from the public sector and related industries, with the so called market sector employment trends slowing rapidly in 2024
- while the demand for labour in many businesses is holding up, it’s weakest since the start of the pandemic in 2020.
- Weaker activity results are not translating into a notable fall in inflation pressures across the business community.
