Australia's Judo Bank Purchasing Managers Index (PMI) Composite rose to a 24-month high of 53.6 in April compared to the previous month's 53.3. The Australian private sector ticked up into an accelerated pace of growth in the second quarter bolstered primarily by Services sector growth.
Key highlights
Australia's Manufacturing PMI Output rose to an eight-month high of 49.1 compared to March's 45.7, brushing off a 2-month low of 54.2 in the Services Business Activity compared to March's 54.4.
According to Judo Bank's Chief Economic Advisor Warren Hogan, "Over the last three months, the PMI results have pointed to a cyclical recovery in the Australian economy in 2024 following a consumer-led slowdown in 2023. While this is great news for the Australian economy, these results are stronger than what the RBA is expecting, suggesting that the economy is beginning to wander off their ‘narrow path’."
Hogan continued, "These results are inconsistent with interest rate reductions at any stage in the foreseeable future and raise the risk that the RBA may have to start hiking again at some stage over the back half of 2024.”
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