Over to Markit now for their PMIs, both lower than May but better than flash indications.
June 2021 Services 56.8
- preliminary was 56.0
June 2021 Composite 56.7
- preliminary was 56.1
Commentary via IHS Markit:
- Business activity continued to increase at a strong rate in June according to the latest IHS Markit Australia Services PMI. While the extension of the Victoria lockdown into June affected some demand and output for the service sector, the overall level of optimism was not significantly diminished.
- Pressure points across prices and labour were however noticeable through the latest survey. The Prices Charged sub-index soared to a fresh survey high to signal record selling price inflation. This was attributed in part to wage inflation and anecdotal evidence pointed to difficulty in hiring by some firms.
- Overall service sector performance remained robust in June. This however comes ahead of the Sydney lockdown update, which is expected to affect the performance of the service sector into July.
Bolding is mine – PMI reports from around the globe are highlighting inflation pressures and labour market issues also. How much longer will central banks be flooding markets with liquidity … are they right about these moves being temporary?