Australia Aug, P CBA Manufacturing PMI:...>

AUSTRALIA: Australia Aug, P CBA Manufacturing PMI: 51.3 (Jul 51.6)

- Australia Aug, P CBA Services PMI: 49.2 (Jul 52.3)

- Australia Aug, P CBA Composite PMI: 49.5 (Jul 52.1)

- Data signalled a first reduction in output since March. New orders decreased,

but employment returned to growth & biz sentiment picked up. Currency weakness

led to a faster rise in m'fing input prices, but services costs increased at a

weaker pace, as did output prices across both monitored sectors. A persistent

concern is that the fallout from the US-China trade war will dent global capex &

consumer spending as cautious biz & households retreat to the sidelines. The

shift back into contractionary territory in the CBA Flash PMI reading for August

indicates that Australia Is not immune to these global risks. The concerns about

weak output readings are tempered a little by positive indications on the labour

mkt & future biz exp. The challenges faced by the RBA in their attempts to

return inflation to the 2-3% target band are also highlighted in the survey. The

lower Aussie dollar is putting upward pressure on input prices. But the

competitive trading environment is limiting the flow through to output prices.