Australia Markit preliminary PMIs for November

Manufacturing 58.5

  • expected 60.7, prior 58.2

Services 55.0

  • expected 52.7, prior 51.8

Composite 55.0

  • prior 52.1

Markit commentary:

  • The Australian economy grew at a faster pace in November, according to the IHS Markit Flash Australia Composite PMI, and this is reflective of the positive effects from the continued easing of COVID-19 restrictions and decline in new cases.
  • The rate of expansion picked up to a five-month high, indicating that the Australian economy continued to enjoy the strengthening of growth momentum.
  • That said, supply chain issues featured strongly in the Australian PMI survey as delivery times lengthened, widespread shortages were reported and price increases continued to be seen. While some of these can be attributed to the presence of pent-up demand that was reported, it will be worth watching if the constraints clear over time.
  • Overall business confidence improved in the latest survey and this was a very positive sign. Private sector firms were also more willing to expand their workforce capacity, though instances of labour shortages had continued to surface.

I bolded the familiar themes we are seeing from right around the developed market globe:

  • supply chain disruption
  • labour supply challenges

The release rarely has much of an immediate impact on the UAD, and there is little discernibale today. Nevertheless all the info goes into the mix.