Afternoon trading August 23

Thanks @shovel40, @Fiji1 and morning crew.

Half-time wrap:

The share market pushed towards its biggest single-session gain in almost a month as Woolworths reported a $1.6 billion profit and miners were lifted by overnight gains in commodity prices.

The ASX 200 climbed 49 points or 0.69% by mid-session, with the consumer staples and materials sector setting the pace. Woolworths bounced 4.8% off a five-month low after increased supermarket margins prompted a lift in dividend. Fortescue Metals, Rio Tinto and BHP rose as iron ore rallied for a 10th session in China.

In economic news, business activity contracted this month as new orders shrank, according to Judo Bank's monthly report. The bank's Flash Australia Composite PMI Output Index dropped to a 19-month low of 47.1 from 48.2 in July as higher rates crimped demand.

The bank's Chief Economic Advisor warned inflation remained a significant headwind despite a sharp series of rate hikes over the last year and a half.

“The inflation indicators are not moving in the right direction. Final prices remain elevated at levels that we judge to be consistent with inflation of at least 4%, rather than the RBA’s desired 2% to 3%," Warren Hogan said.

Personal trading: Slow morning. One tiddler on the go, but low expectations for it by this stage.