Australia Private Sector Growth Revised Higher

Australia’s S&P Global Composite PMI rose slightly to 52.7 in August 2026 from flash data of 52.5, but eased from 53.2 in July. The latest reading marked the fourth expansion in private-sector activity in five months, although growth remained concentrated in services as manufacturing output edged lower. New orders increased across both sectors, lifting composite new business for a second consecutive month, while new export orders rose for the first time in five months. Business confidence strengthened to a six-month high, and firms continued to increase staffing levels. Meanwhile, input cost inflation accelerated, pointing to renewed cost pressures, but the pace of selling-price inflation eased from July, suggesting businesses were less aggressive in passing higher costs on to customers.

Australia’s S&P Global Composite PMI eased to 52.5 in August from a final 53.2 in the previous month, flash data showed. The latest result signaled slower momentum, yet marked the fourth expansion in private-sector activity in five months. Growth was led by services as manufacturing output fell. New orders rose modestly for a second month, while foreign demand improved for the first time since March, aided by stronger global orders for manufactured goods. Employment extended its near-two-year run of gains, though job creation slowed to a three-month low and remained modest across sectors. Backlogs increased again but only marginally. Input cost inflation accelerated after three months of easing, driven by higher fuel, freight, commodity, and raw material costs. In contrast, output price inflation cooled to its weakest pace since early 2026. Business confidence climbed to a six-month high on expansion plans and hopes of stronger demand, though sentiment stayed historically subdued.

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.