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Australia AUD

Australia Markit Composite PMI Flash

Info

History

Chart

Impact:

Low

Source: Markit Economics

Latest Release:

Date:

Surprise:

2.6

Actual:

57.1

Forecast: 54.5

Previous/Revision:

56.6

Period: Mar

What Does It Measure?

The Australia Markit Composite PMI Flash measures the overall economic health of the Australian private sector, encompassing both manufacturing and services sectors. It primarily focuses on key areas such as production, employment, supplier deliveries, and new orders; an index value above 50 signals expansion, while below 50 indicates contraction and it is a national indicator.

Frequency

This economic event is released monthly, typically as a preliminary estimate, with results published on the first business day of each month, based on data collected during the previous month.

Why Do Traders Care?

Traders monitor the Australia Markit Composite PMI Flash as it serves as an early gauge of economic activity, influencing predictions for GDP growth and overall economic momentum. Better-than-expected results can lead to bullish movements in the Australian dollar and equities, while disappointing readings can have a bearish effect on these assets.

What Is It Derived From?

The indicator is derived from a survey of purchasing managers across various industries, primarily focusing on their perceptions of current business conditions. It utilizes a diffusion index calculation method, where responses are weighted to reflect the relative size of each sector, enabling a comprehensive overview of economic sentiment.

Description

The Australia Markit Composite PMI Flash serves as an important leading indicator of economic performance, signaling potential growth or contraction in the Australian economy based on managers' expectations. It provides insights into business cycle trends and helps analysts predict future economic conditions based on current data.

Additional Notes

This indicator is considered a leading economic measure, as it often precedes changes in economic trends and activity levels. It serves as a valuable tool for understanding the broader economic landscape in Australia and is often compared alongside other indices like the Services PMI and Manufacturing PMI for a holistic view.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for AUD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Mar 23, 2022	57.1	54.5	56.6	2.6
Feb 20, 2022	55.9	50.1	46.7	5.8
Jan 23, 2022	45.3	54.5	54.9	-9.2
Dec 15, 2021	54.9	56	55.7	-1.1
Nov 22, 2021	55	55	52.1
Oct 21, 2021	52.2	48.5	46	3.7
Sep 22, 2021	46	44	43.3	2
Aug 22, 2021	43.5	43	45.2	0.5
Jul 22, 2021	45.2	55.6	56.7	-10.4
Jun 22, 2021	56.1	59	58	-2.9
May 20, 2021	58.1	59	58.9	-0.9
Apr 22, 2021	58.8	55	55.5	3.8
Mar 23, 2021	56.2	54.4	53.7	1.8
Feb 18, 2021	54.4	55	55.9	-0.6
Jan 21, 2021	56	56.2	55.6	-0.2
Dec 15, 2020	57	54.5	54.9	2.5
Nov 22, 2020	54.7	53.1	53.5	1.6
Oct 22, 2020	53.6	51.3	51.1	2.3