Australia flash PMIs for May: 51.1 (prev. 50.9), Services: 52.3 (50.1), Composite: 52.2 (50)
CBA / Markit preliminary Australian PMIs
CBA Senior Economist, Belinda Allen:
- "A positive result. The improvement takes the PMI readings well back into expansionary territory and the at the highest level since December 2018." Ms Allen added: "The economy clearly softened over the second half of 2018 and into 2019. A strong rebound in the services PMI is encouraging, as is a small improvement in the manufacturing PMI. There is scope for the PMIs to push even higher over coming months from the expected RBA rate cuts, in combination with the personal income tax relief announced in the 2019/20 Budget. This should boost disposable income and translate into a lift in consumer demand. Input prices remained relatively subdued, in line with weak inflation data."
Some encouraging data, if they hold up into the 'final' results which will begin to be released from June2.