The preliminary for the Judo Bank / S&P Global Manufacturing PMI can be found here:
From the report today:
- “The PMI index, which incorporates a range of sub-indexes to
capture the cyclical position of the manufacturing sector was
unchanged at 49.6 in August, the strongest since February and
pointing to recovery in recent months. - “The demand for staff across Australia’s manufacturing sector
has not abated despite the slowdown in activity earlier in the
year. At no point has the employment index dipped below
50 in 2023 so far and is now moving higher in expansionary
territory. -
“Australia’s manufacturers are not shedding labour to any
great extent and would be expected to add to their staffing
levels if a genuine recovery in activity is established into 2024.
As we are seeing overseas, the unique element of the current
economic cycle appears to be the resilience of labour demand. - “It is hard to forecast a major slowdown for an economy
that continues to generate jobs. Even though the Australian
manufacturing sector is treading water in 2023, there are no
indications of a major downturn in overall activity which implies
very little chance of a broader recession in the economy over
the next six months. -
“The price indicators point to on-going cost and inflation
pressures in the new financial year.