AUSTRALIA DATA
The pickup in private sector activity seen in Q1 was sustained into Q2 according to the Judo Bank preliminary PMIs for April. The composite PMI rose to 53.6 from 53.3, highest since April 2022, with the rise driven by a pickup in manufacturing to close to neutral at 49.9 from 47.3, but it is the strength of services that is driving overall activity growth. The services PMI remained positive but eased marginally to 54.2 from 54.4.
- Judo Bank says that the Q1 composite PMI is in line with GDP rising around 0.6% q/q, significantly stronger than Q4’s 0.2% and a result that would keep the RBA on hold.
- The private sector saw an increase in new business in April, which drove activity and employment. Services new business rose to its highest in almost 2 years, while manufacturing declined at a slower rate.
- In line with recent strong employment gains, the survey showed that the services sector saw “growth in headcounts” while in the manufacturing sector they “near-stabilised”.
- Cost inflation continued to pick up in April due to the softer AUD and higher raw materials prices, but selling price inflation eased again in order to encourage new business. While costs remain a concern, the RBA will be pleased to see that demand is not strong enough for them to be fully passed on.
- Confidence re the outlook remained positive but eased in April.
- See Judo Bank report here.
Australia PMI services vs GDP q/q%
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