Employment Stays Viable as Australia’s Manufacturing Sector Remains Sluggish  

Manufacturing PMI Hit Lowest Level in Six Months 

The Judo Bank Flash Australia Manufacturing PMI experienced a decline to 48 during the month of October 2023, down from 48.7 in the preceding month, according to preliminary data. This marks the eighth consecutive monthly decline in business conditions and represents the lowest reading in 6 months, primarily attributed to decreased production and diminished new order volumes in response to weakened demand. Input expenses witnessed a notable surge, driven by mounting inflationary pressures reaching a peak not seen in 7 months. Escalating fuel expenses emerged as one of the principal factors contributing to the upward pricing pressure. Although output charges also rose, the pace of increase was comparatively slower. Given the deteriorating market conditions, business sentiment declined to its lowest level in three and a half years. Encouragingly, employment levels sustained growth, thereby extending the ongoing streak of job creation for a duration of 3 years. 

(Judo Bank Australia Manufacturing PMI，S&P Global) 

Composite PMI in Contractionary Shadow 

The Judo Bank Flash Australia Composite PMI dropped to 47.3 during October 2023, plunging from 51.5 in the preceding month, as per preliminary findings. This figure represents the lowest reading observed over a span of 21 months, driven by a substantial decline in operational performance across Australia’s private sector. The downturn in business activity stemmed from a reduction in incoming orders, an unfavorable demand climate, mounting inflationary pressures, and elevated interest rates. The volume of new export business experienced a decline for the eighth consecutive month. Input costs continued their rapid advancement, stimulated by rising inflation that reached a 3-month high. Output prices exhibited an increase as well, albeit weakened customer demand exerted pressure on pricing capabilities, resulting in the slowest pace of charge inflation since March 2021.  

(The Judo Bank Flash Australia Composite PMI，S&P Global)