Australia’s Markit preliminary PMIs for July saw Manufacturing at 56.8 (prior 58.6) and Services crash to a 14-month low 44.2 (prior 56.8) as renewed lockdowns aimed to bring the COVID-19 situation under control disrupt the economy.
Australia’s Markit preliminary PMIs for July saw Manufacturing at 56.8 (prior 58.6) and Services crash to a 14-month low 44.2 (prior 56.8) as renewed lockdowns aimed to bring the COVID-19 situation under control disrupt the economy.
Australia Markit preliminary (Flash) PMIs for July.
- Composite Output Index: 45.2, 14-month low (Jun final: 56.7)
- Services Business Activity Index Jul: 44.2, 14-month low (Jun final: 56.8)
- Manufacturing Output Index Jul: 51.8, 13-month low (Jun final: 56.4)
- Manufacturing PMI Jul: 56.8, 4-month low (Jun final: 58.6)
Employment conditions remained positive, although the pace of job creation slowed sharply from June. Firms across both the service and manufacturing sectors continued to increase their operating capacity with manufacturers doing so at a survey record rate.
Price pressures meanwhile eased in July across both input prices and output charges, though both remained above their respective survey averages. Notably, manufacturing input cost inflation accelerated in July, moving against the broad trend of easing price pressures. Firms in the manufacturing sector highlighted higher costs across an assortment of categories, exacerbated by the current COVID-19 disruptions.
Overall, Australian private sector firms remained optimistic with regards to output for the coming 12 months, though the optimism eased to the lowest in just under a year.
Commentary from Markit:
“Latest indications from the IHS Markit Flash Australia Composite PMI suggested that Australia’s growth streak had been brought to a halt in July, and perhaps no surprise given the renewed lockdowns aimed to bring the COVID-19 situation under control.
“While demand and output had evidently been badly affected in July, they are expected to improve once the restrictions are once again lifted. That said, the current COVID-19 disruption’s effect on the supply chain remained evident. Manufacturing input costs continued to rise even as overall price pressures eased, which is an area to watch.
“On the outlook, private sector firms were less optimistic given uncertainties surrounding the more infectious Delta variant and the supply situation. Firms however continued hire across both manufacturing and services, speaking to the robust labour market conditions.”
Source: IHS Markit
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