Manufacturing slumps to monthly low

Gold Spot Price $AU3978

Silver Spot Price $AU47.11

Platinum Spot Price $AU1486

The Empire State Business Index, the gauge measuring manufacturing activity in the state of New York fell 23.4 points for monthly reporting. The fall was surprising, considering economists expected a positive reading for the month.

Previous month 11.5

Predicted 3

Actual -11.9

Any reading below zero for the month suggests deteriorating business conditions. And to see such a see-saw month to month result also suggests we are in for an interesting economic ride over the coming months.

In RBA news today, Assistant Governor Sarah Hunter talks to inflation in more detail while introducing the concept of ‘de-anchoring’. While many of our audience would already be aware of the term hyperinflation, de-anchoring is similar in nature, where inflation goals are simply removed or changed. Simply letting go of a target range for inflation (generally 2-3%) can cause a massive shift in inflation perspective. In other countries that de-anchored, the damage done to their currency both internal (cost of living) and external (devaluation of their currency) is very evident and a clear example of what can occur when inflation is not brought under control.

You can read this full article here - https://www.rba.gov.au/speeches/2024/sp-ag-2024-10-16.html

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