Australia CBA / Markit preliminary PMIs for March.
- Manufacturing 50.1 vs. prior 50.2
- Services 39.8 vs. prior 49.0
- Composite 40.7 vs. prior 49.0
CBA comments:
- "The sharp deterioration in PMI readings during March underline the increasing impact of the coronavirus on the Australian economy. The services sector is being hit hard by the cancellation of events, general fears about social interaction and a very sharp decline in offshore demand as travel restrictions bite. The manufacturing sector is faring a little better. But the leading indicators are flashing warning signs. The deterioration in supplier delivery times is accelerating, highlighting the disruption to supply chains. And the lower Aussie dollar is pushing input prices up at a rapid rate".
- "The one slightly more positive indication from the flash PMI readings is the relatively muted pull back in the employment indexes. This response offers some hope that, with the right mix of economic policies, the damage to the labour market from the coronavirus can be contained"
I think CBA's optimism on restricting damage to the labour market may be misplaced. Australian welfare agencies website crashed yesterday due to unprecedented demands from the surging traffic seeking unemployment benefits. Layoffs have begun with a huge wave.