This is a new data point, Commonwealth Bank Manufacturing PMI

For July, comes in at 54.4

  • June was 56.2

Key points:

  • Australia's manufacturing sector expanded markedly in July, albeit at a slower pace compared to recent months
  • Output, new orders and employment all rose at weaker rates
  • Companies retained a high degree of confidence that growth will be sustained over the coming year
  • Amid reports of suppliers passing on higher raw material prices, input costs continued to rise markedly and led to another round of output charge inflation

Commenting on the Commonwealth Bank Manufacturing PMI data, Michael Blythe, Chief Economist at the Commonwealth Bank:

  • "While the September quarter has kicked off at a slightly slower pace than seen in the June quarter, the manufacturing sector remains comfortably in expansion territory. The lift in new export orders is an encouraging sign that Australia is benefiting from the global recovery now underway"
  • "The deterioration in vendor delivery times and the ongoing expansion in backlogs of work is a timely reminder of the need for Australian business to lift capex. While inflation pressures in Australia remain very tame, the lift in input prices and reports from panellists about higher raw material prices and energy prices point to some stirring at the front end of the pricing chain."

more to come