Markets continue to search for signs of the 'V' shaped recovery. Forward looking data out today showed that Australian manufacturing and services industries are expecting a quick recovery post-Coronavirus.
Source: Commonwealth Bank
Data Tuesday showed Australian business activity returned to a modest rate of growth in June. The CBA Flash PMI, a survey of around 85% of manufacturing and services businesses, printed 52.6 in June, up from May's dismal reading of 28.1. A figure greater than 50 indicates growth. This was the first indication of growth in the index since the start of coronavirus shutdowns.
The service sector was the outperformer (53.2), its best performance in 5 months, but the manufacturing sector (49.8) remained in contraction, albeit marginally. On the whole, companies remained cautious about hiring as they continued to operate below capacity. Employment decreased for the fifth month, but at the slowest rate of decrease in that time.
Expectations for the future improved to their best level in nine months.
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