Australia CBA / Markit preliminary PMIs for September
Manufacturing 49.4
- prior 50.9
Services 52.5
- prior 49.1
Composite 51.9
- prior 49.3
CBA Senior Economist, Gareth Aird:
- "An encouraging result thanks to a pickup in the services sector. There are early signs that the combination of rate cuts, tax rebates and rising dwelling prices is having a positive impact on the services sector.
- The divergence in the readings on the manufacturing and services sector is somewhat unusual, though not unprecedented.
- The dip in the manufacturing reading was a touch disappointing, particularly given the ongoing weakness in the Australian dollar. It may be the case that the raft of so-called geopolitical tensions are having a dampening impact on the local manufacturing sector. Overall, a move in the right direction, but the level of the headline index continues to imply that the economy could do with more stimulus.
- The case for fiscal easing through personal income tax cuts remains."
If you are gonna make like the RBA and watch the labour market, this from the report is not overly encouraging:
- Private sector employment was up only fractionally amid a slowdown in job creation in the service sector and a decline in manufacturing.
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The 'final' numbers for these will be published by Markit from Oct. 1,
