Australia Private Sector Growth at 7-Month High

The S&P Global Flash Australia Composite PMI increased to 51.3 in March 2025 from 50.6 in February, pointing to the strongest growth in private sector activity in seven months, buoyed by improvements in both manufacturing (52.6, the fastest in nearly two-and-a-half years vs 50.4) and services (51.2 vs 50.8).

The expansion in output was driven by higher new business growth, though export orders declined.

Unfinished work meanwhile accumulated for the first time since mid-2022, even as staffing levels rose at the fastest pace in nearly three years.

On the price front, cost pressures intensified, but firms opted to partially absorb costs as optimism about activity in the next 12 months eased.