Australia CBA PMI Manufacturing dropped slightly to 53.9 in August, down from 54.0. However, PMI Services sharply sharply by more than -10 pts to 48.1, down from 58.2, back in contraction. PMI Composite also tumbled to 48.8, down from 57.8, back in contraction too.
CBA Head of Australian Economics, Gareth Aird said: “The decline in business activity over August is hardly surprising given the lockdown measures in Victoria. With the August composite flash PMI only modestly in contractionary territory it is highly likely that outside of Victoria private output continued to expand over the month”.
“The fall in employment is the inevitable consequence of shutting down large parts of the Victorian economy. Encouragingly, firms collectively retain an optimistic view on the outlook despite the setback in Victoria. Ongoing fiscal support for households and businesses remains critical to ensuring that optimism is not misplaced”.
