Australian final manufacturing PMI for October: 48.2 (prior 48.7)

<p>Flash Judo Bank / S&amp;P Global October PMI reading is here:</p><ul><li><a href="https://www.forexlive.com/news/australia-preliminary-pmi-manufacturing-480-prior-487-services-476-prior-518-20231023/" target="_blank" rel="follow" data-article-link="true">Australia preliminary PMI: Manufacturing 48.0 (prior 48.7) &amp; Services 47.6 (prior 51.8)</a></li></ul><p>Warren Hogan, Chief Economic Advisor at Judo Bank commentary from the report, in summary:</p><ul><li>The slight decline in the PMI
index to 48.2 masks a more profound fall in the key output and
new orders indexes.</li><li>
The output and new orders indexes fell to concerning levels in
October, lower than what would normally be associated with
a soft patch.</li><li>The employment index fell to the lowest level since the 2020
lockdowns, although the index level remains above the 50
index level.</li><li>The solid employment result also cautions against reading
too much into the falls in output and new orders in October.
</li><li>Cost pressures increased further in October, with the input
price index rising to the highest level since March. There
has been a clear upward trend for costs since the June low
point, which is indicative of an intensification of business cost
pressures in the current financial year.
</li><li>Contrary to rising input prices, there has been another fall
in the output price index. Output prices remain above the
neutral 50 level, indicative of low inflation of manufactured
goods. Output prices are now back down to what would be
considered normal prior to the pandemic.
</li><li>Rising cost pressures and low final price inflation do not bode
well for manufacturers' margins and profitability. If margin
pressures are sustained, businesses will eventually need to pull
back on investment and hiring to protect profitability.</li></ul><p>IMO there is not a lot positive in this report. Its not overly concerning, but it doesn't inspire confidence. I'm expecting an RBA rate hike next week, the meeting is November 7, which will be another challenge for this sector. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.