Australia August Manufacturing PMI 48.5 (prior 47.5)

Australia Final manufacturing PMI from Judo Bank / S&P Global for August 2024, comes in at the highest level in three months @ 48.5

• prior 47.5

Flash reading here:

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

Commentary from the report, in summary:

• not a manufacturing recession, but an extended
  soft landing
• capacity constraints
  across many parts of the Australian economy are acting as
  a headwind to growth for manufacturing
• above the 50.0 mark for new export orders and a
  jump up in the future output index to the highest level in 18
  months
• new orders and output remain soft at readings below 50.0
• employment rose above 50
• conditions in the manufacturing sector are not
  deteriorating, although a genuine recovery remains elusive
• inflation indicators in the sector worsened, both the input price index (costs) and the output price index
  (final prices) rising during the month
• input prices have sustained index readings just under 60
  over the past four months
• final prices rose towards a 55.0 index reading in August,
  which, if sustained, will lead to the highest readings in more
  than a year

Those price pressures evident in the survey are supportive of the no near-term rate cut view of the Reserve Bank of Australia.

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