It’s been a busy morning for Australian data with the release of the AIG manufacturing PMI gauge, RP Data-Rismark house price index, TD-MI inflation gauge, ANZ job ads along with building approvals for September.
On the manufacturing front the PMI rose 2.9pts to 49.4, the highest level since July, although the index remains below the 50 level that separates expansion from contraction. Interestingly, particularly given the recent fall in the Australian Dollar, the new orders subindex rose to 51.1 during the month.
On housing, the RP Data-Rismark house price index logged a gain of 1.0% leaving the year-on-year increase at 8.9%. While still a large increase, growth is starting to cool after reaching the latest series peak of 11.5% in April. Unsurprisingly were led by Melbourne, Sydney and Brisbane with all of the other State and Territory capitals recording declines for the month.
Turning to inflation, the latest TD-MI inflation gauge rose 0.2% in October leaving the annual increase at 0.2%. Interestingly, the monthly increase was the largest recorded since May with the annual rate also ticking higher for the first time since June. While a small increase, the annual rate looks like it’ll come under even further pressure as we head towards year end with a punchy 0.7% increase rolling off the data come December.
On the job front the ANZ job ads survey increased by 0.2% in October, the smallest increase since May, with the year-on-year rate decelerating to 7.5% from 7.9% in September.
Finally, building approvals plunged in September by 11.0%, the largest month-on-month decline since July 2012, with the annual rate dropping to -13.4%, the biggest annual slide in percentage terms since August 2012. Unsurprisingly given the scale of the decline, unit approvals, at -21.9%, were largely responsible for the ugly headline print. Elsewhere private-sector house approvals slipped by 2.3% leaving the annual rate at +8.6%, a 12-month low.