The preliminary PMIs for Feb are out, here:
CBA comments on the report:
- The February flash PMIs imply a contraction in private demand. Whilst this is clearly a disappointing result, it is not altogether surprising given the two exogenous shocks that have hit the Australian economy - the bushfires and the coronavirus (Covid-19).
- Our main concern is that these event have hit the global and local economies at a time when domestic demand was already soft. The level of both the services and manufacturing PMIs highlights the need for more policy stimulus. With monetary policy doing most of the heavy lifting an easing in fiscal policy continues to look the most appropriate response to support aggregate demand.
Little AUD response, it fell further during the Europe/UK/US session:
