Australia preliminary February PMI: Manufacturing 50.1 (prior 50), Companies 49.2 (48.6)

Some of the feedback from Warren Hogan, Chief Economic Advisor at Judo Bank:

• “We nonetheless look like on the slender path to attain a mushy touchdown
  Soft touchdown
  
  A “soft landing” within the financial system refers to a state of affairs the place financial progress slows down, however doesn’t fall right into a recession. This is usually the specified end result for policymakers, because it permits them to make changes to the financial system with out inflicting widespread job losses or different unfavorable results related to recessions.An instance of a mushy touchdown within the financial system occurred within the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised rates of interest to chill do
  
  A “soft landing” within the financial system refers to a state of affairs the place financial progress slows down, however doesn’t fall right into a recession. This is usually the specified end result for policymakers, because it permits them to make changes to the financial system with out inflicting widespread job losses or different unfavorable results related to recessions.An instance of a mushy touchdown within the financial system occurred within the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised rates of interest to chill do
  Read this Term for the financial system in 2023.
• “Labour demand additionally eased in February throughout each the providers sector and manufacturing industries. Overall labour demand stays in optimistic territory in line with the hoarding of labour because the financial system slows. This ought to hold unemployment low at the same time as financial coverage makers induce a crucial financial slowdown in 2023/24.
• “Prices pressures eased additional within the service industries but stay elevated, whereas manufacturing worth indicators barely moved in February. Despite the moderation, the worth indicators proceed to level to above goal inflation
  Inflation
  
  Inflation is outlined as a quantitative measure of the speed by which the typical worth degree of products and providers in an financial system or nation will increase over a time frame. It is the rise within the common degree of costs the place a given foreign money successfully buys lower than it did in prior intervals.In phrases of assessing the power or currencies, and by extension international trade, inflation or measures of it are extraordinarily influential. Inflation stems from the general creation of cash. This cash is m
  
  Inflation is outlined as a quantitative measure of the speed by which the typical worth degree of products and providers in an financial system or nation will increase over a time frame. It is the rise within the common degree of costs the place a given foreign money successfully buys lower than it did in prior intervals.In phrases of assessing the power or currencies, and by extension international trade, inflation or measures of it are extraordinarily influential. Inflation stems from the general creation of cash. This cash is m
  Read this Term in 2023.
• “The February numbers highlight a further improvement in supply chain function within the Australian economy.
• “At this stage the Judo Bank PMIs are pointing to a welcome slowdown in the economy that may help take upward pressure off interest rates. While this will do little to alter the RBA’s intentions to raise interest rates further over the months ahead, it does indicate that we may be close to the point where the RBA Board can pause the current tightening cycle.”