Invest
Early indicators show virus has hit business
There’s been a sharp upswing of negative impact on Australian business that can be blamed on COVID-19, according to new data.

Early indicators show virus has hit business
There’s been a sharp upswing of negative impact on Australian business that can be blamed on COVID-19, according to new data.

The most recent Commonwealth Bank ‘Flash’ Purchasing Manager Index (PMI) has revealed just how quickly certain sectors in the Australian business community have felt the wrath of the coronavirus pandemic.
For the bank’s chief economist, Michael Blythe, the sharp deterioration underlines “the increasing impact of the coronavirus on the Australian economy”.
He said, “The services sector is being hit hard by the cancellation of events, general fears about social interaction and a very sharp decline in offshore demand as travel restrictions bite.”
For the month of March, it was also reported that coronavirus contributed to the fastest fall in manufacturing since the survey began nearly four years ago.
At the same time, some manufacturers did manage to expand their output due to a lack of goods coming from China.
Mr Blythe commented that while the manufacturing sector is faring a little better, “the leading indicators are flashing warning signs”.
“The deterioration in supplier delivery times is accelerating, highlighting the disruption to supply. And the lower Aussie dollar is pushing input prices for manufacturers up at a rapid rate,” he continued.
Commonwealth Bank noted that the Flash Composite Output Index was down to 40.7 from 49.0 in February – readings below 50.0 signal a deterioration in activity from the month before.
The Flash Services Output Index fell to just 39.8 from February’s 49.0, while the Flash manufacturing Output Index fell from 50.1 from 50.2 in February.
About the author

About the author


Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more

Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more

Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more

Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more

Economy
‘Aussies to keep economy ticking with $200bn in savings’
The government is counting on Aussies to use their savings to drive economic recovery once temporary support measures are wound back at the end of March. ...Read more

Economy
Business improves but COVID threat remains
The Australian economy continues to show signs of life, with businesses’ payment times improving despite recent outbreaks of COVID-19, new research has revealed. ...Read more

Economy
10 impacts the US ‘blue wave’ will have on investors
With the US Senate run-off falling to the Democrats, a new blue wave is spurring optimism for investors, a chief strategist has said. ...Read more

Economy
Frydenberg confident vaccine rollout will boost the economy
The economy and the budget are expected to reap the benefits of the earlier than planned vaccine rollout, following a series of unexpected lockdowns which have already put a dent on the government’s...Read more

Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more

Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more

Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more

Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more

Economy
‘Aussies to keep economy ticking with $200bn in savings’
The government is counting on Aussies to use their savings to drive economic recovery once temporary support measures are wound back at the end of March. ...Read more

Economy
Business improves but COVID threat remains
The Australian economy continues to show signs of life, with businesses’ payment times improving despite recent outbreaks of COVID-19, new research has revealed. ...Read more

Economy
10 impacts the US ‘blue wave’ will have on investors
With the US Senate run-off falling to the Democrats, a new blue wave is spurring optimism for investors, a chief strategist has said. ...Read more

Economy
Frydenberg confident vaccine rollout will boost the economy
The economy and the budget are expected to reap the benefits of the earlier than planned vaccine rollout, following a series of unexpected lockdowns which have already put a dent on the government’s...Read more