Australia - October CBA Services PMI 53.0 (prior 53.2) & Composite 53.1 (prior 53.1)

The October CBA / Markit Service Purchasing Managers Index

Key points highlighted;

• Business activity levels in the Australian service sector improved
• at the weakest pace in the series' 18-month history
• output growth remained solid
• a softer upturn in new orders
• slowest rate of job creation since data collection began
• firms reported that demand was strong enough to warrant increases in output prices, as input costs continued to tick-up

Commenting on the Commonwealth Bank Services and Composite PMI data, CBA's Chief Economist, Michael Blythe:

• "The services economy continues to make a solid contribution to activity in the Australian economy. The lift in new business and the elevated level of business expectations is an encouraging sign that the services contribution will continue into year end."
• "Services sector readings are off their peaks. This step down, however, does not reflect weakness in demand. Service firms are increasing prices charged at a solid rate on the back of solid demand. Supply issues look more relevant. Some panellists, for example, report difficulties in hiring staff, with a flow on to wage costs."

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The CBA October manufacturing index was out earlietr this week:

• CBA / Markit Manufacturing PMI (October) 55.5 (prior 53.8)

As was the AiG manufacturing PMI:

• Australian Industry Group Performance of Manufacturing Index for October: 51.1 (prior 54.2)

And, yet to come, due at 2230 GMT - services PMI from the Australian Industry Group

• for October
• prior 52.1