The S&P Global Australia Manufacturing PMI was revised up to 51.5 in June 2026 from a preliminary estimate of 51.2, and from 50.7 in May. This was the highest reading since January and signaled a third consecutive month of expansion in the manufacturing sector.
However, despite the stronger headline figure, factory output declined for the fifth straight month, weighed down by weak demand and rising prices. New orders also fell for the fourth month in a row, though the rate of decline was the slowest seen in the current downturn. In contrast, export orders returned to growth after two months of contraction.
Employment rose for a second consecutive month, as firms took on additional staff in anticipation of future projects. Meanwhile, suppliers’ delivery times lengthened sharply, reflecting ongoing disruptions related to the conflict in the Middle East.
Both input and output price inflation eased markedly from May but remained elevated, driven by higher fuel, freight, and raw material costs. Business confidence improved to a four-month high, supported by expectations of stronger demand and an improved geopolitical backdrop.
