S&P Global / Judo Bank Final Services PMI for July 2023.
- Services is 47.9, tumbling into contraction from 50.3 in June
- third monthly fall in the services activity index
- biggest monthly fall since the start of the Reserve Bank of Australia's tightening cycle in May 2022
- Composite is 48.2 in July, down
from 50.1 in June.
- composite is its lowest level since December 2022
Flash reading is here:
Commentary from the report, in summary:
- All the main activity indicators in the services PMI declined in July although both employment and new business activity indexes remain in expansion above the 50 level.
- demand for labour remains in expansionary territory although only just ... After two years of chronic labour shortages, it appears businesses across Australia might be hoarding labour through the initial stage of the economic slowdown.
- July inflation indicators in the services index rose with final prices up 2.4 points to the highest level since January 2023 ... The jump in the final price index of the service sector suggests that the disinflation trend evident since the middle of 2022 has come to an end in 2023. This will be of some concern for the RBA as the index is suggesting that services price inflation across the Australian economy is unlikely to fall much below 4% to 5% over the next 6 months.
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The Reserve Bank of Australia cycle of hikes began in May of '22:
