FX.co ★ Australia Factory Activity Set for 2-Month Streak Expansion

The S&P Global Australia Manufacturing PMI experienced an uptick, reaching 52.2 in December 2025 from 51.6 in November, according to preliminary figures. This signals a potential second month of growth, contingent on confirmation. The rise is attributed to renewed increases in new orders and production, though the growth pace has slowed compared to November. A fresh increase in new export orders for goods played a crucial role in mitigating a decline in service exports, thus supporting overall demand. Looking forward, confidence about output for the upcoming year has strengthened, bolstered by expansion plans and expectations of improved economic conditions that could elevate sales. As a result, manufacturers have increased hiring, while outstanding orders were reduced for the eighth consecutive month. This is reflective of a decline in services, even though manufacturing backlogs rose for the first time in eight months. Purchasing activity has intensified, and supplier delivery times have lengthened more than at any point in the last 14 months. Concurrently, pressures on input costs have increased, leading to higher selling prices, which have climbed to their highest level in three months.