Australian manufacturing sector improved but remained in contraction this month, according to the latest data released by both the Commonwealth Bank of Australia (CBA) and the Markit Economics on Tuesday.
The CBA Preliminary Manufacturing Purchasing Managers Index (PMI) arrived at 49.8 in June vs. 49.3 expected and 44.0 last.
The CBA Preliminary Services PMI came in at 53.2 in June vs. 25.7 expected and 26.9 booked in May.
Meanwhile, The CBA Preliminary Composite PMI to 52.6 in the reported month vs. 28.1 previous.
Commenting on the Commonwealth Bank Flash PMI data, 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.”
About Australian CBA PMI
The Manufacturing Purchasing Managers Index (PMI) released by both the Commonwealth Bank of Australia and the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in Australia. A result above 50 signals is bullish for the AUD, whereas a result below 50 is seen as bearish.
With the overall business activity in Australia returning to growth this month, the AUD bulls are receiving an added boost, as AUD/USD clinches a new multi-day high of 0.6925 on the data release.