Australia preliminary June PMI: Manufacturing 47.5 (prior 49.7) Services 51.0 (prior 52.5)

Preliminary Judo Bank S&P Australian Manufacturing PMI 47.5

• prior 49.7

Services 51.0

• prior 52.5

Composite 50.5

• prior 52.1

Wow, what an awful set of numbers. Early 2024 was promising but that’s fallen in a heap now.

Warren Hogan, Chief Economic Advisor at Judo Bank
this in brief on the employment and inflation aspects:

• “The composite employment index was down but
  remains comfortably above neutral, suggesting
  ongoing labour demand in June.
• “The composite input price index fell below the 60
  level for the first time since January 2021, a sign that
  business cost growth might be easing. Hopefully,
  we are seeing the start of a genuine moderation in
  business cost growth. This is essential to reducing
  inflation in an economy with very little productivity
  growth over recent years. Final prices also eased
  but remained at an index level that points to above target inflation.
• “Service sector price indicators pulled back in June,
  consistent with the view that inflation is gradually
  easing in 2024. However, index levels point to inflation
  still above the RBA’s target of 2-3%.

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