Australian manufacturing PMI for October 2024 (final) 47.3 (prior 46.7)

Judo Bank / S&P Global final manufacturing PMI for October 2024 in Australia comes in at 47.3. Another month in contraction.

• prior 46.7
• the preliminary was 46.6

In summary from the report:

• Trading Conditions: Improved toward the end of October but remain weak historically, with gradual headcount reductions continuing.
• Output & New Orders: Increased slightly from previous lows, showing improvement compared to September; decline in output has stabilized.
• Household Stimulus Impact: Not benefiting local manufacturers significantly; services sector remains resilient in contrast.
• Exports: Subdued, with New Export Orders at low levels similar to the early pandemic.
• Employment: Manufacturing employment has mostly declined monthly throughout 2024, unlike high demand in the services sector.
• Pricing: Output prices rose to a five-month high, indicating possible domestic goods inflation above the RBA’s target.
• Input Costs: Fell to pre-pandemic levels, easing margin pressures and improving operating margins.
• Business Confidence: Future activity index is above neutral, showing positive outlook but with optimism at its lowest since 2016, despite slight improvement from mid-year lows.

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