Australia Markit Services PMI Flash

Info

History

Chart

Impact:

Medium

Source: Markit Economics

Latest Release:

Date:

Surprise:

2.8

AUD

Actual:

57.9

Forecast: 55.1

Previous/Revision:

57.4

Period: Mar

What Does It Measure?

The Australia Markit Services PMI Flash measures the economic health of the services sector, indicating the level of economic activity and business conditions within this important area. It focuses on key aspects such as production levels, new orders, employment, and supplier deliveries, with a reading above 50 signifying expansion and below 50 indicating contraction; it's a national indicator.

Frequency

The report is released monthly and is typically published around the first week of every month, representing a preliminary estimate of the services sector's performance.

Why Do Traders Care?

Traders monitor the Services PMI Flash due to its ability to provide early insights into economic trends that can affect financial markets, especially in terms of the Australian dollar (AUD) and local equities. Stronger-than-expected results can lead to bullish sentiment for currencies and stocks, reflecting optimism about economic growth, while disappointing figures may have a bearish impact.

What Is It Derived From?

The PMI Flash is derived from surveys sent to purchasing managers in the services industry, encapsulating their assessments of business conditions through diffusion indices where responses indicate whether conditions are improving, stable, or deteriorating. The survey typically includes a significant number of respondents, ensuring data is reflective of the broader market, and employs standardized measurement techniques for accuracy.

Description

The Markit Services PMI Flash provides a snapshot of the current conditions in the services sector as early as possible each month, generating insights into future economic activity and growth prospects. It serves as a leading indicator of economic performance, enabling traders to make informed decisions based on business sentiment and potential shifts in economic trends.

Additional Notes

This PMI Flash serves as a leading economic measure and is often watched alongside other indicators like the Manufacturing PMI to present a comprehensive view of economic activity. The data helps gauge broader economic trends and is relevant not only to Australia but also in comparison to similar reports from other countries.

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	57.9	55.1	57.4	2.8
Feb 20, 2022	56.4	50	46.6	6.4
Jan 23, 2022	45	54.8	55.1	-9.8
Dec 15, 2021	55.1	57.4	55.7	-2.3
Nov 22, 2021	55	54	51.8	1
Oct 21, 2021	52	48	45.5	4
Sep 22, 2021	44.9	44	42.9	0.9
Aug 22, 2021	43.3	42	44.2	1.3
Jul 22, 2021	44.2	55.5	56.8	-11.3
Jun 22, 2021	56	59	58	-3
May 20, 2021	58.2	59	58.8	-0.8
Apr 22, 2021	58.6	55	55.5	3.6
Mar 23, 2021	56.2	53.8	53.4	2.4
Feb 18, 2021	54.1	54	55.6	0.1
Jan 21, 2021	55.8	56.5	57	-0.7
Dec 15, 2020	57.4	54.7	55.1	2.7
Nov 22, 2020	54.9	53.5	53.7	1.4
Oct 22, 2020	53.8	51	50.8	2.8