FX.co ★ Australia Factory Activity Contracts for the 1st Time This Year

The S&P Global Australia Manufacturing PMI declined to 49.7 in October 2025 from 51.4 in September, effectively ending a nine-month streak of expansion and signaling a contraction in the sector. This downturn was driven by a significant drop in new goods orders, which experienced their steepest decline this year. Similarly, export demand waned following a brief increase in August, as manufacturers pointed to lethargic global trade conditions. Business confidence has plunged to its lowest level in 11 months due to ongoing trade uncertainties and weaker external demand. Additionally, manufacturing input prices surged at the fastest rate since April, fueled by elevated costs of input materials, increased transportation expenses, and supply chain disruptions. However, firms reported limited capacity to transfer these costs to consumers, as heightened competition has curbed the ability to raise selling prices.