Australia Composite PMI Hits 2026 High at 52.6 on Services Rebound

Australia's private sector expansion accelerated in July. The S&P Global Flash Composite PMI rose to 52.6 from 50.4, the highest reading since the start of the year.

The services sector drove the move. The Services PMI Business Activity Index jumped to 53.0 from 50.5. Manufacturing PMI ticked up to 51.7 from 51.5. The data suggest the economy is growing at a pace above the survey's long-run average.

New orders increased for the first time in five months, S&P Global said. That points to a recovery in domestic demand, even as overseas markets remain weak. Manufacturing output stayed slightly below the expansion threshold at 49.9, up from 49.5 in June. The improvement signals the sector's downturn is easing rather than deepening.

Input cost pressures continued to moderate, the survey showed. Firms became more willing to protect profit margins as business conditions improved. Businesses remained cautious on the outlook, citing uncertainty around the global economy and trade environment, S&P Global said.