Commonwealth Bank Manufacturing PMI for September, comes in at 53.8 from 53.5 in August.
Key points:
- The Australian manufacturing sector expanded at a stronger rate at the end of the third quarter, despite slower rises in output and new orders.
- Instead, the improvement in growth was driven by markedly lengthening suppliers' delivery times, plus a quicker increase in inventories.
- Business confidence remained positive, despite easing to a one-year low, while employment rose modestly.
Comment from Michael Blythe, Chief Economist at the Commonwealth Bank:
- "The PMI stabilised in September after declines in July and August.
- Manufacturing activity is still expanding but it appears that the period of acceleration is over.
- Nevertheless, panellists report that economic conditions remain favourable and this positive view extends to expectations for the next year.
- Some of the themes evident for a while now were again on show in September. Capacity pressures continue to lift with backlogs of work and supplier delivery times lifting again. And competitive pressures mean that output prices are lagging well behind growth in input costs."
AUD response is small (barely registered!). There is usually little immediate response to Australian PMI data. But wait- there's more! Another manufacturing PMI due from Australia at the bottom of the hour - stay tuned.
2230 GMT - Australia - Australian Industry Group Manufacturing PMI (September)
- prior 59.8
