The manufacturing PMI from CBA / Markit was out on Monday: 53.8 (prior 53.5)

This for services and composite now to complete their September PMIs.

"Key findings"

  • September survey data revealed a further slowdown in Australian service sector business activity growth, with the pace of expansion the weakest seen since the series began in May 2016.
  • However, growth in new orders picked up since August, which supported the strongest increase in employment in 2017 to date.
  • Meanwhile, input prices continued to increase sharply, despite the rate of inflation weakening for the second month in a row.

That second point, on employment, this tends to be a lagging indicator. And that third point, on price increases, yeah - not much sign of it in the official CPI data (nor the monthly private report).

But, not to be too much of a glumster - at 53.2 services still solidly in expansion just at a slower rate.

More, comments from CBA's Chief Economist, Michael Blythe:

  • "The pace of service sector activity declined during the September quarter. But PMI readings remain at levels consistent with decent growth in the services economy.
  • And the key leading indicator components relating to employment, new business and business expectations remain at elevated levels.
  • The services sector is experiencing the same rapid increase in input costs as reported in the Manufacturing PMI. But services have been more successful in passing this cost increase through to prices charged. This outcome suggests that the demand side of the services equation remains resilient".

AUD has shown little response. Services PMIs do not generally have too sharp am immediate impact on the currency.

And, still come, due at the bottom of the hour: