Tuesday, 1 July 2008

Aussie PMI Shows Contraction in June

The Australian Purchasing Managers index fell to 47.0 in June. A reading under 50 suggests contraction whilst a reading over 50 suggests expansion. The weakness was across the board with many components moving into contraction mode. Production, Employment and New Orders all fell and are now all well below the 50 mark.

Capacity Utilisation also fell sharply from 75.85 in May to 70.85 in June whilst Input Prices rose sharply from 70.6 in May to 84.9 in June. The RBA left interest rates on hold at today's meeting and the June PMI reinforces that view.