The second of the Australian PMIs for manufacturing for the month
CBA's key findngs:
- The health of Australia's manufacturing sector improved solidly in September and at the greatest pace since June.
- New business increased at the fastest rate since April, encouraging stronger growth in production.
- However, backlogs of work were accumulated as firms raised employment only mildly.
- Input buying and stockpiling were raised to cater for additional workloads, despite a further lengthening of supplier delivery times.
More - these comments from Gareth Aird, Senior Economist at the Commonwealth Bank:
- "A healthy result. PMI readings have climbed higher over the past two months despite some concerns globally emanating from US trade policy
- Output has accelerated over the September quarter and the trend is encouraging.
- The slowdown in hiring looks like a natural response to the big lift in employment earlier in the year.
- The lower AUD continues to put upward pressure on input costs, as do rising new material costs.
- But firms have been able to lift output prices in response which indicates robust aggregate demand."
-
Yesterday we got the AiG PMI: Australia AiG Manufacturing PMI September: 59.0 (prior 56.7)
