Australian Industry Group Performance of Services Index for November 2022. Ugly result at 45.6.
Main points from the group’s report:
- 3rd month of decline
- All activity indicators in contraction
- employment and new orders indicators declined significantly in November, suggesting weakening demand
- capacity utilisation remained elevated, rising to 82.8%. In services, this reflects ongoing tight employment conditions
- delivery delays, cumulative interest rate increases, and labour shortages were key concerns for businesses
This is the final PMI from Australia for the month. Earlier:
Yesterday the Reserve Bank of Australia raised the cash rate again. The Bank is struggling to achieve its mandate of inflation around 2 to 3%. The Bank said it expects to raise interest rates further. I expect so also. The RBA is well behind the Reserve Bank of New Zealand. The RBNZ are hiking into a weakening economy, the RBA will also.
The latest forecast for the RBNZ:
AUD/USD update, little changed on the slumping PMI: