What happened
September flash purchasing managers' index data showed Australian private-sector expansion slowing to its weakest pace in three months. The composite output index fell to 50.8 from 52.7 in August. Services sector growth moderated to 51.4 from 53.2, while manufacturing output plunged into contraction territory at 49.3 down from 52.0 previously.
Why it matters here
Decelerating economic output indicates that previous interest rate increases and elevated cost-of-living pressures are dampening business conditions. Investors should expect tighter corporate profit margins, particularly across industrial and manufacturing sectors facing declining demand and persistent input costs.
What to watch
The Australian Bureau of Statistics monthly labor market release due Thursday for further signs of economic cooling.
Source
tradingeconomics.com