Australia Private Sector Contracts for 1st Time in 5 Months

2026-10-22 22:36 By Chusnul Chotimah 1 min. read

Australia’s S&P Global Flash Composite PMI declined to 47.7 in October 2026 from 51.3 in September, marking the lowest reading since March, preliminary data showed.

It was the first contraction in private-sector activity since May, with the services sector contracting for the first time in five months, while manufacturing continued to contract, though at a softer pace.

Manufacturers and service providers saw demand hurt by weak market confidence, rising borrowing costs, and broader inflationary pressures.

Foreign sales were broadly unchanged, with manufacturers reporting a less pronounced reduction in new export orders.

However, employment rose, driven by job creation in the services sector.

On prices, input cost inflation accelerated to a five-month high due to higher energy, shipping, commodity, and wage costs.

Output costs rose as firms opted to pass on their increased cost burdens to clients.

Lastly, sentiment weakened to a four-month low amid concerns over the economic outlook.



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Australia Private Sector Contracts for 1st Time in 5 Months
Australia’s S&P Global Flash Composite PMI declined to 47.7 in October 2026 from 51.3 in September, marking the lowest reading since March, preliminary data showed. It was the first contraction in private-sector activity since May, with the services sector contracting for the first time in five months, while manufacturing continued to contract, though at a softer pace. Manufacturers and service providers saw demand hurt by weak market confidence, rising borrowing costs, and broader inflationary pressures. Foreign sales were broadly unchanged, with manufacturers reporting a less pronounced reduction in new export orders. However, employment rose, driven by job creation in the services sector. On prices, input cost inflation accelerated to a five-month high due to higher energy, shipping, commodity, and wage costs. Output costs rose as firms opted to pass on their increased cost burdens to clients. Lastly, sentiment weakened to a four-month low amid concerns over the economic outlook.
2026-10-22
Australia Composite PMI Revised Higher
Australia’s S&P Global Flash Composite PMI was revised higher to 51.3 in September 2026 from a preliminary estimate of 50.8, but remained below the final reading of 52.7 in August. However, it still marked the lowest reading since June. The latest result marked the fourth straight month of expansion in private-sector activity, with the services sector continuing to grow, though at its slowest pace in three months. Meanwhile, manufacturing output contraction deepened, with a renewed fall in new goods orders. Rising services new business, meanwhile, kept overall new orders in expansion, but total export business declined due to a drop in manufacturing export orders. Employment also declined further in September. On the price front, output cost inflation accelerated, with input and output cost pressures intensifying in the services sector, while easing in manufacturing activity but remaining elevated by historical standards. Finally, business sentiment weakened to a three-month low.
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2026-09-22