Australia Manufacturing Contraction Sharpest in 21 Months

2026-09-30 23:11 By Joshua Ferrer 1 min. read

The S&P Global Australia Manufacturing PMI fell to 49.6 in September 2026, above the preliminary estimate of 49.3 but down from 52.0 in August.

This marked the sharpest decline in 21 months, driven by a renewed fall in new orders, which decreased for the first time in three months amid intense competition, rising prices and weaker demand.

New export orders also contracted after rising in August.

As a result, output fell at the fastest pace since December 2024, while manufacturing employment declined for the first time in five months.

Backlogs fell for the 17th straight month.

Firms also reduced purchasing activity at the fastest pace in four months.

Supplier delivery times lengthened further due to Middle East shipping disruptions and severe weather in North Asia.

Input cost inflation eased slightly but remained elevated, due to higher raw material, oil and transport costs, while output price inflation slowed to its weakest in seven months.

Business confidence fell to a four-month low.



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Australia Manufacturing Contraction Sharpest in 21 Months
The S&P Global Australia Manufacturing PMI fell to 49.6 in September 2026, above the preliminary estimate of 49.3 but down from 52.0 in August. This marked the sharpest decline in 21 months, driven by a renewed fall in new orders, which decreased for the first time in three months amid intense competition, rising prices and weaker demand. New export orders also contracted after rising in August. As a result, output fell at the fastest pace since December 2024, while manufacturing employment declined for the first time in five months. Backlogs fell for the 17th straight month. Firms also reduced purchasing activity at the fastest pace in four months. Supplier delivery times lengthened further due to Middle East shipping disruptions and severe weather in North Asia. Input cost inflation eased slightly but remained elevated, due to higher raw material, oil and transport costs, while output price inflation slowed to its weakest in seven months. Business confidence fell to a four-month low.
2026-09-30
Australia Manufacturing Sector Contracts for 1st Time in 6 Months
The S&P Global Australia Manufacturing PMI fell to 49.3 in September 2026 from 52.0 in August, according to flash estimates, marking the first contraction since March. Manufacturing output fell to 46.4 from 49.6, the strongest decline in 21 months, as new orders weakened and export demand remained soft. New export orders declined for the fifth time in six months, while manufacturers reported greater supply-chain pressure as input delivery times lengthened again. On the pricing front, input cost inflation eased from August despite higher energy and fuel costs linked to the Middle East conflict, while output price inflation remained elevated. Business confidence also deteriorated to a three-month low amid concerns over economic conditions, costs, demand and customer retention.
2026-09-22
Australia Manufacturing Growth Confirmed at 6-Month High
The S&P Global Flash Australia Manufacturing PMI was confirmed at 52.0 in August 2026, unchanged from the preliminary estimate, matching July's reading and remaining at the highest level since January. A reading above 50 indicates growth, signalling a further modest improvement in the overall health of the sector. The latest figure was supported by a faster rise in new orders since January, amid renewed export growth. Employment increased for the fourth month running. As a result, firms reduced their backlogs of work, which fell markedly and by the largest extent in just over a year. Suppliers' delivery times lengthened due to international shipping delays. However, output ticked lower, reversing a slight rise seen in July, as demand remained muted. On the price front, input cost inflation accelerated slightly due to higher freight and fuel costs, while output cost inflation eased for the third straight month and was the slowest in six months. Lastly, business sentiment improved.
2026-08-31