Australia CBA PMI Manufacturing dropped fro 49.7 to 45.6 in April. Manufacturing output decreased for the eighth successive month in April, and to the greatest extent since the survey began in May 2016. PMI Services dropped from 38.5 to 19.5. Company shutdowns and coronavirus restrictions resulted in severe declines in both business activity and new orders in the service sector. PMI Composite dropped from 39.4 to 22.4.
CBA Head of Australian Economics, Gareth Aird said: “This is an astonishing result. The collapse in the headline index reflects the severe contraction in economic activity currently taking place. The services sector has been hit a lot harder than the manufacturing sector. And the pace of job shedding is concerning though not surprising given the large number of Australian businesses that remain shut. The extent to which the PMIs rebound will be dictated in large part by the duration of the enforced shutdown”.
