CBA / Markit preliminary PMIs for March 2019.

Manufacturing 52.0

  • prior 52.9

Services 49.8

  • prior 48.7

Composite 50.0

  • prior 49.1

The report highlights the 'key findings':

  • Business activity stabilised in the Australian private sector at the end of the first quarter of the year following a decline in February. Services activity continued to fall, while manufacturing growth softened.
  • New orders were also unchanged in March, while job creation was the slowest in the 35-month survey so far.
  • Relatively weak demand conditions led to softer business sentiment, with confidence around the 12-month outlook the lowest since June 2016.

Commenting on the Commonwealth Bank Flash PMI data, CBA Senior Economist, Kristina Clifton:

  • "Softer economic conditions experienced over the second half of 2018 have continued into the first quarter of 2019. The headline PMI lifted to 50, indicating that activity had stabilised following a decline last month. The forward looking indicators have softened, with the new orders component at 50 following an expansion last month. The employment component fell, but remains above 50 indicating employment is expanding."
  • "Solid jobs growth is helping consumers navigate an environment of falling house prices and weak wages growth. It looks likely that there will be personal income tax cuts announced in the upcoming Federal budget. Personal income tax cuts would support consumer spending, a positive for the business sector."