Just as is happening with the big 8 economies, the Australian services PMI is falling, though here, the manufacturing PMI is also falling. There are plenty of anecdotal reports of plunging services: declining visits to restaurants, slumping coffee sales, and so on. Unemployment is rising, retail sales are sliding.
As usual, the Reserve Bank (RBA) has raised interest rates at precisely the wrong time, covering itself with glory yet again.
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| The 2021 slump in the services PMI was caused by a Covid lockdown |
The chart below shows the S&P Global manufacturing PMI and the Australia Industry Group's survey (where I've adjusted the latest data to keep them comparable to the AI Group's historic data). So, sliding into recession.
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