Preliminary and priors for this, the Markit / S&P Global / Judo Bank Australia PMIs, can be found here:
Earlier this week we had the final manufacturing PMI:
Final for January for services is 48.6, and for composite 48.5.
From the repot, Warren Hogan, Chief Economic Advisor at Judo Bank said:
- “Australia’s service sector economy improved in January following a moderation of activity for much of 2022. This welcome slowdown of economic activity has translated into a modest easing of inflation pressures although, capacity constraints, particularly in the labour market, are still evident across the economy as we start 2023.
- “Services PMI ... strongest result in three months and is consistent with a mild slowdown in services activity from extraordinarily strong rates of growth in 2022.
- We might be seeing some renewed optimism about the re-opening of the Chinese market and improved access for Australian business.
- “This moderation of services activity from unsustainably strong rates of growth in 2022 will be welcomed by policy makers keen to reduce excess demand across the economy. What remains unclear is if this slowdown in activity is enough to bring inflation pressures back down in line with the RBA’s 2-3% target range.
- “All the price indicators in the services sector remain elevated in early 2023. While inflation is likely to have ‘peaked’ at 7.8% in the final quarter of 2022, the PMI price measures suggest underlying inflation pressures will not dissipate quickly.
