Flash Australian PMIs for December 2022 from S&P Global /Markit
manufacturing 50.4
- prior 51.3
services 469.9
- prior 47.6
composite 47.3
- prior 48.0
more to come
You may be tempted to view this poor data as a case for a halt to Reserve Bank of Australia rate hikes. I urge care with this conclusion. Inflation in Australia is way, way above the 2 to 3% target band which means the RBA still has a job to do bring the CPI down.
Yesterday's employment data was strong indeed, at least the RBA has had some success on this leg of their dual mandate:
The RBA next meet on February 7. I expect another 25bp rate hike then.
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The rate hike path from the RBA so far:
