Australian S&P / Markit flash PMIs for November 2022.
Manufacturing 51.5
- prior 52.7
Services 47.2
- prior 49.3
Composite 47.7
- prior 49.8
These are pretty crappy results (crappy is a technical term). With further RBA rate hikes ahead and China digging its COVID hole even deeper its difficult to see much improvement in the near term.
Commentary from the report:
“The latest S&P Global Flash Australia Composite PMI data revealed that the private sector economy further contracted midway into the fourth quarter, faced with deteriorating demand conditions. In particular, the service sector continued to be affected by higher interest rates and capacity constraints, leading to a sharper fall in business activity.
“That said, with price inflation further climbing in November, the pressure remains on the central bank to keep tightening monetary policy to rein in prices. This is also amid indications of solid employment growth from the PMI data.
“The mix of deteriorating demand and worsening price pressures does not bode well for the near-term outlook, and this has also been reinforced by the decline in private sector confidence in November.”
AUD is not a lot changed. It seems more responsive to global developments ... but the outlook is not all sunshine and lollipops, reports like this should weigh on it.
