Australia Composite PMI Revised Upward

2026-06-02 23:04 By Chusnul Chotimah 1 min. read

Australia’s composite PMI was revised higher to 48.7 in May 2026 from 47.8 in the preliminary estimate, but remained below the final reading of 50.7 in April.

It marked the second contraction in three months as services and manufacturing activity weakened amid the prolonged Middle East conflict.

Services activity contracted for the second time in three months, while manufacturing growth eased, with output declining for a fourth straight month.

Total new orders dropped at the steepest pace in just under two and a half years, underscoring softer demand amid the Middle East war.

Employment also fell for the first time in 17 months, with job losses the sharpest in nearly five years.

Input costs rose due to higher fuel prices, although inflation eased from April.

Selling price inflation also slowed from April's 39-month high.

Lastly, sentiment slumped to its lowest level since November 2023 amid concerns surrounding a broader economic downturn, higher prices, and rising interest rates.



News Stream
Australia Composite PMI Revised Upward
Australia’s composite PMI was revised higher to 48.7 in May 2026 from 47.8 in the preliminary estimate, but remained below the final reading of 50.7 in April. It marked the second contraction in three months as services and manufacturing activity weakened amid the prolonged Middle East conflict. Services activity contracted for the second time in three months, while manufacturing growth eased, with output declining for a fourth straight month. Total new orders dropped at the steepest pace in just under two and a half years, underscoring softer demand amid the Middle East war. Employment also fell for the first time in 17 months, with job losses the sharpest in nearly five years. Input costs rose due to higher fuel prices, although inflation eased from April. Selling price inflation also slowed from April's 39-month high. Lastly, sentiment slumped to its lowest level since November 2023 amid concerns surrounding a broader economic downturn, higher prices, and rising interest rates.
2026-06-02
Australia Private Sector Activity Falls Back Into Contraction
Australia’s composite PMI fell to 47.8 in May 2026 from a final 50.4 in the previous month, flash data showed, marking the second contraction in three months as services and manufacturing weakened under the prolonged Middle East conflict. Services swung back into contraction after April’s expansion, while manufacturing output declined for a fourth straight month. Total new orders dropped at the steepest pace since September 2021, underscoring softer demand amid geopolitical uncertainty. Employment also fell for the first time in 18 months, with job losses the sharpest in nearly six years. Input cost inflation accelerated to its second-highest since August 2022, driven by fuel, raw materials, and transport, while output charges rose further, though at a slower pace than costs. Business confidence slumped to a record low in the survey’s decade history, weighed down by rising costs, risk of further rate hikes, and challenging market conditions.
2026-05-20
Australia Private Sector Recovers Slightly in April
Australia’s S&P Global Australia Composite PMI rose to 50.4 in April 2026, better than initial estimates of 50.1, signaling a slight return to growth following a first reduction for a year-and-a-half in the previous month at 46.6. The increase in output reflected growth in services business activity, climbing to 50.7 as sustained job creation supported output, while manufacturing production declined for a third straight month amid supply disruptions and weaker demand. New orders fell for a second consecutive month, reflecting uncertainty and rising fuel costs linked to the Middle East conflict, though services exports showed slight growth. Inflationary pressures intensified sharply, with input costs surging to multi-year highs, prompting firms to raise selling prices. Employment rose overall, supported by services hiring, but manufacturing firms cut jobs. Meanwhile, business confidence weakened to its lowest in nearly two years, as concerns over costs and demand persisted.
2026-05-04