Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Previously unpublished sector data for Australia show output
trends across six broad categories
Downturn from COVID-19 lockdown in spring was most severe in
consumer services
Majority of sectors back in growth territory in November
Finer sub-sector data shows steep impact on travel-related
services from containment measures
The Australian economy has, like the rest of the world,
experienced a steep decline in economic activity as a result of
coronavirus disease 2019 (COVID-19) over the course of 2020.
However, different parts of the economy have suffered in different
ways and to varying degrees. To gain a deeper insight into these
sectoral trends, we present new, previously unpublished, PMI data
that track business output and other key metrics across 15 industry
sectors.
These PMI series include data for six broad industry sectors
from our manufacturing and services survey panels where sample
sizes are large enough to give a reliable indicator for output
trends. Using the IHS Markit sector classifications, these include
basic materials, consumer goods, consumer services, financials,
industrials and technology.
Importantly, these data provide a more nuanced insight into the
impact of the COVID-19 pandemic on businesses over the course of
2020 compared to broader manufacturing and services data as
different sectors have faced varying challenges from restrictions
on activity and their impact on demand.
Downturn in output over spring, led by consumer
services
In April, when global containment measures designed to reduce
the spread of COVID-19 were the most severe, four of the six broad
sectors saw record drops in output (since Australia PMI data was
first collected in May 2016), with consumer goods registering its
sharpest fall during May. Basic materials was the only sector to
not see a record downturn in the spring.
As was also the case for published global and regional sector
PMI data, consumer services firms across Australia were notably the
worst-hit by lockdown measures during April. That said, when
restrictions were eased, consumer services activity rose markedly
and at the quickest pace across all six sectors in June.
Employment PMI data meanwhile showed that consumer services
firms also reported the strongest reduction in jobs as a result of
lockdown measures in April. Most sectors registered steep declines
in employment, with technology the only exception as firms saw a
more modest decrease in staffing. Unlike output, however,
employment has largely continued to fall, often reflecting efforts
among companies to cut costs and reduce excess capacity.
More recently, PMI data have shown that the economic impact of
the COVID-19 pandemic lessened over the Australian spring, with a
majority of the broad sectors having posted growth in output in
each month since September. Five of the six sectors saw a rise in
output during the latest survey period, while basic materials firms
reported an unchanged level of production. Growth was strongest
across the financial sector, overtaking industrials (which
registered the second-quickest rate of expansion).
Travel-related sectors suffered steep decline but
rebounded well
In addition to the broad sector groupings, we have also
generated data for nine more detailed sub-sectors to provide more
granular insights into Australian industry trends. In relation to
the pandemic, these series can pinpoint which areas of the economy
have endured the greatest downturns through 2020.
Notably, the two sectors facing the strongest declines were
tourism & recreation and transportation, two sectors that rely
heavily on travel for new business. The tourism & recreation
sector also includes restaurants and other recreational venues that
have faced some of the strictest COVID-19 measures over the course
of the year.
Both of these sectors recorded marked falls in output during
April, though subsequently reported sharp rebounds as lockdown
restrictions were eased. State-level restrictions then led to a
renewed, but much softer, decrease in activity in the tourism &
recreation sector. In November, however, both sectors recorded
solid growth.
In contrast to the two worst-performing sectors, two sub-sectors
have registered growth on average in 2020 so far, namely banks and
beverages & food. While the banking sector saw a sharp downturn
as global markets were depressed earlier in the year, it has since
registered expansions in activity in each month since June.
Beverages & food producers meanwhile saw a distinct rise in
output in April, which was linked to increased consumer purchases
of essential goods. While output then slipped in May and June, it
has since returned to growth.
Going forward, these broad and finer sub-sector data series can
track the pace of recovery across each part of the Australian
economy through 2021 as the world looks to find its footing after
the impact of lockdown measures, in addition to highlighting any
persistent weakness in sectors still impacted by COVID-19.
Purchasing Managers' Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
