A closely-followed economic survey recorded the first monthly decline since January as firms said they were impacted by higher interest rates.
The figure was significantly below expectations, following a consensus among economists of a 50.3 reading for the month.Experts warned that the data could show an increased risk of recession due to efforts to tackle rampant inflation by increasing interest rates.
“A renewed contraction of the economy already looks inevitable, as an increasingly severe manufacturing downturn is accompanied by a further faltering of the service sector’s spring revival.A technical recession is typically defined as two consecutive quarters of decline.The services industry had been a particular driver of growth in recent months but reported its joint-fastest slump in output for 31 months.
Across all industries, new orders fell for the second consecutive month as surveyed firms “cited a reluctance to spend among clients in the wake of higher interest rates and stretched disposable household incomes”. “High interest rates are starting to have their intended effect of dampening demand and reducing inflationary pressures, leading to moderated input costs and reduced raw material prices for manufacturers.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China’s confidence deficitThe case against a balance sheet recession
Read more »
Tekken 8 January release date leaks online as fans hope for Gamescom revealIt looks like Tekken 8 will be out early next year, as Bandai Namco deal with separate leaks about the game’s character roster line-up.
Read more »
Manchester United 'looking to sign Ivan Toney in January' after betting suspension endsManchester United are interested in signing Ivan Toney once the player's betting ban is lifted, it has been claimed.
Read more »
Andre January transfer could hinge on two factors after Liverpool reportsThere are two key facets to any potential Andre deal that Liverpool must be aware of
Read more »
Chief Executive of South Lanarkshire Council to retire in JanuaryCleland Sneddon has revealed his intention to step down at the start of January after 34 years in local government.
Read more »
COVID-19 recession resulted in 'baby bump,' says studyThe COVID-19 recession resulted in an overall baby bump, or increase in births, among U.S.-born mothers, according to a study published online Aug. 15 in the Proceedings of the National Academy of Sciences.
Read more »