Slowdown in Australian Private Sector Activity

According to a preliminary report by S&P Global, Australia's private sector experienced a slight slowdown in business activity during April. Key economic indicators showed a minor decline compared to March, signaling a cautious start to the second quarter.

Key PMI Figures Highlight the Trend

The flash services PMI, a critical indicator of private business sector activity, registered at 51.4, marking a two-month low. Although it remains above the neutral 50 mark, it's a step down from March's 51.6. Similarly, the manufacturing PMI saw a decrease to 51.7 from 52.1 in the previous month. The composite PMI, combining both sectors, also edged lower from 51.6 to 51.4.

Domestic Demand: A Silver Lining

"April’s S&P Global Flash Australia PMI data indicated that business conditions further improved in Australia’s private sector. Domestic demand continued to act as a strong proponent for business activity growth at the start of the second quarter of the year," noted Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence.