Check out this table from the Australian Industry Group’s just released servies PMI:
I would have typed it up myself but I didn’t want to repeat ‘contracting’ 8 (8!, count ‘em) times.
Coming on top of other recent poor data that is not showing much of a ‘transition’ from mining investment to other sectors of the economy, this release again has fuelled calls for, and expectations of, a May 7 rate cut from the RBA (the RBA has a policy board meeting on May 7).
If the RBA wasn’t such a conservative organisation I’d say a rate cut is a definite. But they do dither.
AUD is barely reacting. 1.0254/58.
