Australia Factory Growth Picks Up in June

The S&P Global Australia Manufacturing PMI increased to 51.2 in June 2026 from 50.7 in the previous month, preliminary estimates showed. It was the third consecutive month of expansion, supported by modest rises in employment. However, production continued to decline slightly, with the pace of contraction little changed from the previous month, while new orders also fell. Delivery times lengthened as some suppliers consolidated deliveries to reduce shipping costs. On the pricing front, input prices rose due to higher fuel and transportation costs, while output prices also increased, though inflation eased compared to the previous month. Looking ahead, business sentiment strengthened, supported by expansion plans and optimism about future new orders.

The S&P Global Australia Manufacturing PMI was revised higher to 50.7 in May 2026 from 50.2 in the preliminary estimate, after 51.3 in April. However, the latest reading was still lower than the previous month's level as output contracted for the fourth consecutive month, while new orders fell at the steepest pace since last October, with new export orders also declining solidly. Meanwhile, employment increased for the first time in three months, although job creation was only marginal. Delivery times lengthened to the second-largest degree in 46 months, amid ongoing war in the Middle East. On prices, input cost inflation eased slightly but remained the second-fastest in nearly four years, driven by higher fuel and transportation costs. Meanwhile, output price inflation accelerated to its fastest pace since August 2022. Finally, business sentiment ticked up amid hopes of improvement in new orders over the coming year.

The S&P Global Australia Manufacturing PMI declined to 50.2 in May 2026 from 51.3 in April, preliminary data showed. The decline came as output contracted for the fourth consecutive month, while employment also declined. Meanwhile, delivery times lengthened by the second-largest extent in nearly four years due to vessel delays, material shortages, and higher fuel prices amid the ongoing Middle East conflict. Purchasing activity returned to contraction, falling at the sharpest pace in 15 months. On prices, input prices continued to fall, while output prices increased.