Australia preliminary August PMI: Manufacturing 48.7(prior 47.5) Services 52.2(prior 50.4)

August 22, 2024 at 12:19AM
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:

This article was written by Eamonn Sheridan at www.forexlive.com.

Australia preliminary August PMI: Manufacturing 48.7(prior 47.5) Services 52.2(prior 50.4)