Aussie PMI sinks back into recession

Thursday 21 November 2024

Right where the sadistic RBA wants it.

Flash Australia PMI Composite Output Index(1): 49.4 (Oct: 50.2). 10-month low.
Flash Australia Services PMI Business Activity Index(2): 49.6 (Oct: 51.0). 10-month low.
Flash Australia Manufacturing Output Index(3): 47.9 (Oct:44.7). 6-month high.

Backlogs of work depleted again in November to suggest a lack of pressure on business capacity.

The rate at which the volume of unfinished work declined was the quickest since July with goods producers clearing their backlogged work at a quicker pace compared to service providers.

Consequent of the lowering of capacity pressures, Australian businesses hired additional staff at a slower pace in November.

The rate of job creation was marginal and below the series average.

The sadist is going to have to hard pivot.

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.