Last week we got the manufacturing PMIs

For this release, says CBA;

  • signalled a slowdown in Australian service sector activity growth
  • pace of expansion easing to a three-month low
  • both incoming new orders and employment increased to the weakest extents since data collection began 21 months ago
  • On the price front, output charges rose at the slowest rate since July 2017 amid a softer upturn in input costs.

CBA's Chief Economist, Michael Blythe:

  • "The rate of expansion in the Australian services sector slowed a little in early 2018. But service providers remain strongly positive on the outlook for the year ahead. More than two-thirds of respondents expect a lift in activity
  • Despite the slower pace of expansion in January, capacity pressures continued to rise. The Outstanding Business Index, for example, remains well above average levels. These pressures are playing out in a positive way in the labour market and payrolls are expanding with business growth. But, as with the earlier Manufacturing PMI, some panellists are indicating that rising cost burdens are being passed on down the pricing chain".

The data point does not tend to have too much of an immediate FX impact. But, it all goes into the mix.

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There will be more Aussie PMis to come, due at 2230 GMT

AiG Services PMI

  • prior 52.0