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

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.