Australia’s Private Sector Grows for 8th Months

The S&P Global Australia Composite PMI slipped to 50.5 in May from 51.0 in April, indicating continued but marginal growth in business activity.

This marked the eighth consecutive monthly expansion, though the pace was the slowest so far in 2025 and driven solely by the service sector, as manufacturing remained weak.

New business growth decelerated despite a modest rebound in export orders.

Hiring activity also slowed, reflecting limited pressure on capacity.

Business sentiment held steady at April’s five-month low, suggesting cautious outlooks.

Meanwhile, charge inflation eased to a six-month low, supported by a softer rise in input costs.

Overall, the data pointed to a fragile and uneven recovery across Australia’s private sector.