Preliminary PMIs from Australia for December
Manufacturing 53.7
- prior was 54.6
Services 52.2
- prior was 53.7
Composite 52.4
- prior was 53.9
Lower across the board, in keeping with the softer signs we have been seeing on indicators for the Australian economy (not all, but most).
Markit/CBA commentary:
Growth was maintained in the Australian private sector during December, but signs of softer demand were evident across both the manufacturing and service sectors.
- New orders increased at the slowest pace in four months, with output growth and job creation slowing accordingly.
- Meanwhile, business sentiment was at a two-and-a-half year low.
- There were further signs of inflationary pressures waning, with input costs rising at the slowest pace in almost a year.
CBA's Chief Economist, Michael Blythe
- "The manufacturing and services sector ended 2018 in expansion territory. But PMI readings are noticeably below those prevailing at the end of 2017. The carryover momentum into 2019 is less as a result
- PMI readings for Q4 were above those for Q3. So the slowdown does not look like an ongoing slide. It also suggests that the weakness in Australian GDP growth in Q3 won't be repeated in Q4"
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If you are checking out AUD/USD, no you are not dreaming. It is barely moving on the data point. This is not a 'top tier' market moving event. not even close. ps. Not saying it isn't good info, it all goes into the mix.
