Good news for Aussie services PMI is bad news
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Bad news for anybody exposed to interest rates, at least. Judo Bank with the note.
Business activity in the Australian service sector rose in the final month of the third quarter, according to the latest PMI data. Renewed growth in new business, including from abroad, led to output rising in September. Furthermore, the volume of backlogs declined at a slower pace with the replenishment of new work, while firms also hired more staff to cope with the rise in business activity.
Meanwhile, input price inflation notably climbed in September, but service providers shared their increased costs at a slower rate amid reduced optimism.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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