Australia PMI Manufacturing dropped from 53.5 to 52.8 in October, a 14-month low. PMI Services dropped from 50.6 to 49.0, a 9-month low. PMI Composite dropped from 50.9 to 49.6, a 9-month low.
Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence said:
“Australia’s private sector saw renewed contraction in October with the service sector primarily showing signs of stress. A fall in demand for services was underpinned by higher interest rates and prices, altogether reflective of the detriments of aggressive monetary policy tightening and capacity constraints upon business activity.
“Although input price inflation declined in October, output price inflation climbed in the private sector according to the PMI data suggesting that price pressures have yet to ease steadily. A tight labour market also indicates that wage inflation may persist.
“Overall business confidence meanwhile continued to trend lower in October to the weakest since the height of the COVID-19 pandemic in April 2020, which is not a positive sign for the Australian economy.”
