From the flash CBA PMIs: - "Backlogs of...>

AUSTRALIA: From the flash CBA PMIs:

- "Backlogs of work continued to rise slightly in September, but companies

showed a reluctance to take on additional staff. Private sector employment was

up only fractionally amid a slowdown in job creation in the service sector and a

decline in manufacturing."

- "An encouraging result thanks to a pickup in the services sector. There are

early signs that the combination of rate cuts, tax rebates and rising dwelling

prices is having a positive impact on the services sector."

- "The divergence in the readings on the manufacturing and services sector is

somewhat unusual, though not unprecedented. The dip in the manufacturing reading

was a touch disappointing, particularly given the ongoing weakness in the

Australian dollar. It may be the case that the raft of so-called geopolitical

tensions are having a dampening impact on the local manufacturing sector.

Overall, a move in the right direction, but the level of the headline index

continues to imply that the economy could do with more stimulus. The case for

fiscal easing through personal income tax cuts remains."