Australia flash PMI shows manufacturing falls to 49.3 in September

Summary

Australia's flash PMI for September indicated a significant weakening in private-sector momentum, with manufacturing falling to 49.3 from 52.0, marking a contraction in factory activity. This decline represents a sharper deterioration from the previous month's performance, as the reading dropped below the neutral level. Meanwhile, the services sector also experienced a slowdown, easing to 51.4 from 53.2, but it remains in expansion territory, suggesting growth is continuing albeit at a reduced pace.

Analysis

Services: Services activity remained in expansion territory, but its lower reading points to moderating growth compared with the previous month. Manufacturing: The manufacturing reading fell below the neutral level, indicating contraction in factory activity and a sharper deterioration from August. Economic signal: Australia’s September flash PMI showed private-sector momentum weakening, with manufacturing moving into contraction while services continued to expand but at a slower pace.

Categories

macro

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