Australia November Serices PMI drops further into contraction at 45.6 (vs. October 47.7)

News

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:

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