Australia Manufacturing PMI Revised Upward

The S&P Global Australia Manufacturing PMI was revised higher to 52.0 in July 2026 from the preliminary estimate of 51.7 and after a final reading of 51.5 in the previous month. Still, it marked the strongest expansion since January, as output and new orders returned to growth. The latest reading also signaled a fourth consecutive month of expansion, with output and new orders rising for the first time in five months, although the pace of growth remained only marginal. However, export orders continued to decline, reflecting persistent weakness in external demand. Employment continued to increase for the third consecutive month, with job creation remaining solid and reaching its fastest pace since January, while backlogs of work fell for the fifteenth consecutive month as firms were again able to keep on top of workloads. On prices, input price inflation eased to a five-month low, while output price inflation slowed slightly. Looking ahead, business sentiment improved.

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.