Australia CBA PMI Services rebounded strongly to 53.2 in June, up from 26.9, back in expansionary region. PMI Manufacturing also rose to 49.8, up from 44.0, very close to 50 stabilization level. PMI composite rose to 52.6, up from 28.1, also back in expansion, and hit the highest level in 9 months.
CBA Head of Australian Economics, Gareth Aird said: “The June PMIs are consistent with our view that we are now past the low point in economic activity. Overall conditions are still very soft, but there were a few encouraging pieces of information in the PMIs. Confidence has improved in both the manufacturing and services sectors. And the lift in both input and output prices is welcome as it suggests we are more likely to be in a period of disinflation rather than deflation. The further decline in employment was disappointing, but given the lagging relationship between employment and output it is not surprising. We should see headcount lift from here.”
