Australia Global Composite Falls to 3-Month Low

Australia’s S&P Global Flash Composite PMI slipped to 50.8 in September 2026 from 52.7 in August, marking the lowest reading since June. Still, the latest result was the fourth straight month of expansion in private-sector activity, with the services sector continuing to grow, though its pace slowed for a second month. Meanwhile, manufacturing output fell further, the sharpest pace in 21 months amid a renewed drop in order books. New orders grew for a third month, but at the slowest rate in the period, while export orders fell for the fifth time in six months, due to weakness in manufacturing. Employment dropped for the first time in four months, marking its steepest drop since October 2020, while outstanding business rose marginally. On prices, input and output cost inflation accelerated, with Middle East conflict-related energy and fuel costs cited as a key driver. However, inflation remained well below second-quarter levels. Finally, confidence weakened to a three-month low.

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.