Australia Composite PMI Revised Higher

Australia’s S&P Global Composite PMI was revised up to 53.2 in July from the flash 52.6, accelerating from June’s 50.4 to the highest since January. The reading signaled a second consecutive month of private-sector expansion, underpinned by the strongest services growth in six months and a return to manufacturing output gains. New orders rose for the first time in five months, while the decline in export sales eased. Employment climbed at a solid pace for a second month, though stronger demand drove a renewed buildup of backlogs, highlighting capacity pressures. On inflation, input costs continued to rise sharply but eased to a five-month low from April’s peak. In contrast, output price inflation picked up at the start of Q3, returning to levels close to those seen in April and May. Business confidence rebounded from June’s 31-month low to its strongest level since just before the Middle East conflict in February, signaling improved sentiment heading into the second half of the year.

Australia's S&P Global Composite PMI climbed to 52.6 in July 2026 from a final 50.4 in June, flash estimates showed. It was the highest reading since January, signaling a second straight month of expansion in private-sector activity, with growth strengthening to a pace above the long-run average. Services activity rose the most in six months, while factory output posted its strongest performance of the year. New orders returned to growth after four months of declines, though export demand weakened further. Rising workloads lifted backlogs for the first time in five months, prompting firms to step up hiring, with employment growth at its quickest since April. Input cost pressures eased to their softest since February, yet higher fuel, raw material, and wage costs continued to weigh on businesses. Output price inflation edged up from June but stayed below April–May levels. Finally, confidence improved only marginally from June’s multi-year low, remaining subdued by historical standards.

Australia's composite PMI was revised up to 50.4 in June 2026 from the flash estimate of 49.8, rebounding from May's 48.7 to signal a marginal expansion in private-sector business activity. The upturn was driven by a renewed growth in the services sector, while manufacturing output continued to fall, albeit at a slower pace. Higher staffing levels helped firms increase output despite a further drop in new orders, suggesting businesses relied on existing capacity and backlogs to sustain activity. On the price front, input cost inflation remained elevated but eased from the previous month, indicating some moderation in cost pressures. At the same time, output price inflation slowed sharply, with selling prices rising at the weakest pace since January, reflecting weaker pricing power amid subdued demand. Finally, confidence deteriorated for a second consecutive month, falling to its lowest level since November 2023 as firms remained cautious over the economic outlook and future demand.