Australia November Serices PMI drops further into contraction at 45.6 (vs. October 47.7) | Forexlive

Australian Industry Group Performance of Services Index for November 2022. Ugly result at 45.6.

Main points from the group’s report:

• 3rd month of decline
• All activity indicators in contraction
• employment and new orders indicators declined significantly in November, suggesting weakening demand
• capacity utilisation remained elevated, rising to 82.8%. In services, this reflects ongoing tight employment conditions
• delivery delays, cumulative interest rate increases, and labour shortages were key concerns for businesses

This is the final PMI from Australia for the month. Earlier:

Yesterday the Reserve Bank of Australia raised the cash rate again. The Bank is struggling to achieve its mandate of inflation around 2 to 3%. The Bank said it expects to raise interest rates further. I expect so also. The RBA is well behind the Reserve Bank of New Zealand. The RBNZ are hiking into a weakening economy, the RBA will also.

The latest forecast for the RBNZ:

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AUD/USD update, little changed on the slumping PMI: