Australia CBA Manufacturing PMI dropped to 49.4 in December, down from 49.9. That also the worst contraction in 44 months. Services PMI dropped to 49.5, down from 49.7. PMI Composite dropped to 49.4, down from 49.7.
Commenting on the Commonwealth Bank Flash PMI data, CBA Chief Economist, Michael Blythe said:
“The PMI readings indicate that the Australian economy ended 2019 on a softish note. The RBA’s “gentle turning point” for the economy remains elusive. And the weakness in private spending evident in the Q3 GDP data looks to have continued in Q4, with a flow on to labour demand as well. There were also some early indications that the disruptions associated with the terrible bushfires around Sydney and elsewhere are having some impact”.
“New orders continue to rise, however, indicating a degree of resilience in the domestic economy. The rise in new export business also indicates a degree of resilience to the sluggish global backdrop”.
