Australia preliminary PMIs for May: Manufacturing 55.3 (prior 57.9) Services 53.0 (56.6)

Australian preliminary PMIs from Markit, the S&P Global Flash Australia PMIs

• Manufacturing 55.3 (prior 57.9)
• Services 53.0 (prior 56.6)
• Composite 52.5 (prior 55.9)

All three are solidly in expansion, and at 4 month lows. We'll get the final reading for all of these in a week or so.

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Commenting on the flash PMI data, Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence said:

• “The expansion of the Australian economy continued in May at a solid pace, according to the S&P Global Flash Australia Composite PMI. Although manufacturing output was affected by issues of COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term disruptions and poor weather conditions, manufacturing demand remained robust, which had been a reassuring sign.
• “Persistent supply chain constraints continue to pose challenges for firms in the private sector, both in terms of input acquisition and price fluctuations. Anecdotal evidence also suggested that firms are concerned with the rising interest rate outlook and the effect on their businesses, all of which are worth monitoring moving ahead.
• “That said, overall business sentiment remained positive while workforce expansion continued at a strong pace in May, positive signs gleaned from the latest PMI survey.”