Australia preliminary PMI: Manufacturing 48.0 (prior 48.7) & Services 47.6 (prior 51.8)

Commentary from the report. in summary

• New orders weakened in October and are below the
  50 neutral level, indicative of a soft landing across the
  economy. The Output and the New Orders Index would
  have to fall substantially further to be consistent with a
  broader economic recession.
  
• the slowdown in business activity
  thus far has not translated into a significant reduction in
  hiring intentions. Australian businesses are still looking to
  expand their workforce, consistent with ongoing net new
  job creation in the official employment report.
• Of most significant concern is further evidence of
  inflation ‘stickiness’. That is, both the input and output
  price indexes remain elevated and do not signal a return
  of inflation to the RBA’s target anytime soon.
  
• The RBA will receive the final October readings before
  the board meeting on Melbourne Cup day. These latest
  results should not materially impact the interest rate
  decision. A strong case exists for a further modest
  upward adjustment to the Australian cash rate target,
  to ensure the economy remains on the so-called ‘narrow
  path’. If we are to avoid recession, Australia will need
  an extended period of below-trend growth to ensure
  inflation returns to target by 2025.