These flash PMIs from CBA / Markit, the 'final' for February will be out next week
- Manufacturing 53.1 (prior 53.9)
- Services 49.3 (51.0)
- Composite 49.7 (51.3)
CBA / Markit key points:
- Business activity in the Australian private sector decreased fractionally in February as a dip in services activity outweighed continued growth in manufacturing.
- New orders also ticked down, but employment continued to rise solidly.
- On the price front, both input costs and output prices increased at sharper rates than in January.
- Companies, meanwhile, were confident that output would return to growth over the coming year.
Comment, Commonwealth Bank's Michael Blythe, Chief Economist:
- "The dip in the PMI below the 50 line that separates expansion from contraction is a significant event. It is the first negative reading in the life of the Australian PMI survey. It indicates a loss of momentum in the Australian economy at the start of 2019. And it underlines the shift in forward guidance by the RBA to a more neutral setting".
- "The divergence between (contracting) service sector activity and (expanding) manufacturing activity should be noted. It shows the slowdown is not broadly based and the more forward looking components like jobs and business sentiment point to a recovery later in 2019"
