Prior 49.8Services PMI 52.5 vs 49.5 expected
\nPrior 49.3Composite PMI 52.4 vs 50.6 expected
\nPrior 50.5<\/p>\n
The manufacturing PMI missed expectations but we had a big jump in the services PMI. The key part here is that “the overall economy is growing at its fastest clip in 16 months” and although the agency is more cautious on this part, there are reasons to expect improvement ahead given Fed rate cuts.<\/p>\n
Comment:<\/p>\n
Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:<\/p>\n
\u201cTrouble seems to be brewing in manufacturing. Sure, companies have been ramping up production for seven straight
\nmonths, but new orders took a nosedive in September. If demand, both at home and abroad, keeps dropping, it won\u2019t be
\nlong before firms hit the brakes on production, too.\n<\/p>\n
\u201cThe services sector picked up a bit of steam in September. It is back in growth territory, expanding at the joint-fastest pace
\nwe have seen all year. That is a turnaround after five months of mostly declining activity. Still, companies are not exactly
\nbursting with confidence. They have actually dialled back their optimism a notch. Given that orders, including those from
\nabroad, are falling again, it is not hard to see why.\n<\/p>\n
\u201cCosts remain a headache for service providers. In September, input costs, which include wages and energy, rose at the
\nfastest rate since April, pushing services input price inflation further above the long-term average. At least services firms
\nmanaged to pass some of those higher costs on to their customers. Even so, profits are likely under pressure, which
\nprobably explains why jobs in this sector have been cut for two months running.\n<\/p>\n
\u201cThe overall economy is growing at its fastest clip in 16 months. But do not get too comfortable. Orders are under pressure,
\nespecially in manufacturing but also in services, signalling another slowdown could be on the horizon. Despite the promise
\nof billions in capex and investment incentives, business expectations for the year ahead are pretty muted. That is unlikely to
\nchange until these investment projects really get off the ground and become visible, not just here and there, but across the
\nboard.\u201d<\/p>\n
Germany Composite PMI<\/p>\n","protected":false},"excerpt":{"rendered":"Prior 49.8Services PMI 52.5 vs 49.5 expected Prior 49.3Composite PMI 52.4 vs 50.6 expected Prior 50.5 The manufacturing…\n","protected":false},"author":2,"featured_media":39490,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-39489","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/39489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=39489"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/39489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/39490"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=39489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=39489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=39489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}