Australia CBA / Markit preliminary PMIs for April give a guide to the virus outbreak impact on the economy … ugly indeed.

Manufacturing 45.6

  • prior 49.7

Services 19.6

  • prior 38.5

Composite 22.4

  • prior 39.4

'Key points'

  • The latest Commonwealth Bank Flash Composite PMI® pointed to a much stronger contraction of the Australian private sector during April, with the decline particularly severe at service providers. The coronavirus disease 2019 (COVID-19) led new orders to fall at a steep pace, with employment scaled back markedly as a result. Both input costs and output prices decreased, but this was reflective of trends in the service sector as manufacturing inflation trends accelerated.
Australia CBA / Markitpreliminary PMIs for April give a guide to the virus outbreak impact on theeconomy … ugly indeed.

Note the relative divergence between manufacturing and services PMIs - we've seen similar for other countries. Supply line issues will be weighing on manufacturing but this pales in comparison to the demand destruction reflected in the services PMIs.

barf bag