Australia Factory Growth Hits 6-Month High

The S&P Global Australia Manufacturing PMI rose to 51.7 in July 2026 from 51.5 in the previous month, according to flash estimates, marking the strongest growth since January. The latest reading also signaled a fourth consecutive month of expansion, supported by the first increase in new orders in five months, driven by stronger domestic demand and new client wins, while employment rose at the fastest pace since April. However, export orders continued to decline, reflecting persistent weakness in external demand. On the pricing front, input cost inflation eased to its softest level since February despite higher fuel, oil, raw material, and wage costs, while manufacturers raised selling prices at a slower pace than in June. Looking ahead, business confidence improved only slightly and remained subdued amid ongoing economic uncertainty.

The S&P Global Australia Manufacturing PMI was revised higher to 51.5 in June 2026 from initial estimates of 51.2 and up from 50.7 in May. This also marked the highest level since January and a third consecutive month of manufacturing growth. Despite the stronger headline reading, factory output declined for a fifth straight month due to weak demand and rising prices, while new orders also fell for a fourth consecutive month, although at the slowest pace in the current downturn. Export orders returned to growth after two months of decline. Employment increased for a second straight month as firms hired staff for future projects, while suppliers' delivery times lengthened sharply amid ongoing disruptions linked to the Middle East conflict. Input and output price inflation eased significantly from May but remained elevated due to higher fuel, freight, and raw material costs. Business confidence climbed to a four-month high on hopes of stronger demand and improved geopolitical conditions.

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.