“The output and new orders indexes fell to concerning levels in October, lower than what would normally be associated with a soft patch,” said Warren Hogan, chief economic advisor at Judo Bank.
“So far, the Australian PMIs are consistent with a soft landing for the broader economy and a gradual reduction in inflation back to the RBA’s target of 2% to 3% by 2025. It is too early to suggest that the Australian manufacturing sector is heading for a hard landing. All monthly economic data needs to be viewed cautiously, but we will watch these indicators closely over the final months of 2023,” he added.