The Commonwealth Bank Composite PMI for Australia fell to 48.6 in January of 2020 from 49.6 in December. The reading pointed to the third straight month of contraction in private sector activity and the worst on record, flash figures showed. Services led the fall (48.9 from 49.8) and manufacturing also shrank faster (49.1 from 49.2). Output fell sharply while new orders and employment increased. The rate of input cost inflation softened again to a nine-month low, but companies raised their output prices at a sharper pace than in December. Confidence in the 12-month outlook for business activity improved to a four-month high in January, but was still relatively muted. Stronger optimism was reflective of improving sentiment at service providers, while manufacturers were less upbeat. Composite Pmi in Australia averaged 53.52 points from 2016 until 2019, reaching an all time high of 58.30 points in March of 2017 and a record low of 49.10 points in February of 2019. source: Markit Economics
Composite Pmi in Australia is expected to be 51.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in Australia to stand at 52.50 in 12 months time. In the long-term, the Australia Commonwealth Bank Composite PMI is projected to trend around 54.00 points in 2020, according to our econometric models.