Australia’s June PMI rises to 49.8 but remains in contraction, business confidence hits historic low

(1) Andrew Harker from S&P Global Market Intelligence stated that the preliminary June PMI presents a mixed picture for Australian businesses: business activity is close to stabilizing, the services sector performed relatively well, and there are some signs of easing inflationary pressures. (2) However, the market still faces significant uncertainties, resulting in a further decline in new orders and business confidence falling to one of the lowest levels on record. (3) The seasonally adjusted Composite Output Index rose from 48.7 in May to 49.8 in June, remaining below the 50 threshold for the second consecutive month, indicating that overall business activity is still in contraction territory.