Australia Manufacturing PMI Revised Slightly Lower

The S&P Global Australia Manufacturing PMI was revised slightly lower to 49.6 in October 2026 from preliminary estimates of 49.7, unchanged from a 21-month low of 49.6 in September. It was the second straight month of contraction in the manufacturing sector, as new orders fell at the steepest pace since December 2024, driving a solid decline in output. Meanwhile, overseas demand fell for another straight month, though at a slower rate. Purchasing activity continued to fall in line with new orders, with delivery times worsening to their worst level since mid-2022. On the price front, input cost inflation accelerated due to higher energy, raw material, supplier, and shipping costs. In response to rising input prices, output costs rose for the first time in five months, as firms opted to pass on their increased cost burdens to clients. Looking ahead, business sentiment remained positive but below its long-run average.

The S&P Global Australia Manufacturing PMI inched up to 49.7 in October 2026 from a 21-month low of 49.6 in September, preliminary estimates showed. It marked the second straight month of contraction in the manufacturing sector, driven by a steeper fall in new orders, while foreign demand reported a less pronounced decline. Weakened demand was driven by a lack of market confidence, rising borrowing costs, and general inflationary pressures at the start of the fourth quarter. Purchasing activity continued to fall in line with new orders, with delivery times worsening further. On the price front, input cost inflation accelerated due to higher energy, shipping, commodity, and wage costs. In response to rising input prices, output costs rose as firms opted to pass on their increased cost burdens to clients. Looking ahead, business sentiment remained positive.

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.