Mwahaha. Two words for you: house prices. It’s only one soft data point but if this runs a few months then the RBA will be forced back into the game.
Flash Australia Composite PMI Output Index: 52.2 (Mar: 48.5), 10-month high
Flash Australia Services PMI Business Activity Index: 52.6 (Mar: 48.6), 10-month high
Flash Australia Manufacturing PMI Output Index: 49.8 (Mar: 47.5), 2-month high
Flash Australia Manufacturing PMI: 48.1 (Mar: 49.1), 35-month low
Differing trends were also seen with regards to new orders, where a slight increase in the service sector contrasted with the sharpest fall in manufacturing new business in 20 months. Overall, new orders were unchanged in April, following two months of decline.
A stabilisation of new business limited the extent to which companies were able to deplete backlogs of work, which decreased at the slowest pace since last November.
Meanwhile, employment rose for the twentieth successive month, and at a solid pace that was the
The Judo Bank Flash Australia Services PMI Business Activity Index moved back above the 50.0 no-change mark in April, up to 52.6 from 48.6 in March. The index signalled a solid expansion in services activity, and one that was the fastest since June last year.
Some panellists reported tentative signs of demand picking up. As such, new business increased slightly, ending a two-month sequence of decline. Rising new business encouraged companies to continue increasing their workforce numbers. Employment expanded at the sharpest pace in five months.
Input costs continued to increase rapidly in April, often linked to higher salary payments. However, the rate of inflation softened to a 17-month low,. Meanwhile, selling prices rose at a solid pace, and one that was slightly faster than that seen in the previous month.
Anybody for New Zealand-style stagflation?
