Flash PMIs from Markit from Australia in September. The final readings will follow from next week.
- Composite 46.0 from prior 43.3.
Australia’s two largest population cities and states continued to be impacted by COVID-19 lockdowns during the month, the harshest economic impact on the services sector.
As noted by Markit in their commentary to the report:
- “The extension of COVID-19 restrictions into September continued to dampen business conditions in the Australian private sector, although the slight easing of restrictions was picked up in the latest IHS Markit Flash Australia Composite PMI, seeing the overall Composite Output Index contracting at a slower rate in September. This may also be suggesting that we are looking at early signs of a turning point.
- “The employment index meanwhile pointed to higher workforce levels, which was a positive sign following the decline recorded in August, driven by the severe COVID-19 disruptions.
- “That said, price pressures intensified once again for Australian private sector firms while evidence of worsening supply constraints gathered, all of which remains a focal point for the Australian economy.”
Bolding above is mine. Price pressure and supply constraints are not exclusive to Australia, we are seeing similar right around the globe.
AUD is barely moved. Not unusually for this data release. The focus today will be China and Evergrande again. The heartbeat you see on the chart is the FOMC response: