The S&P Global Australia Manufacturing PMI was revised up to 50.7 in May 2026 from a preliminary estimate of 50.2, following a reading of 51.3 in April. Despite the upward revision, the index remained below the previous month’s level, as output contracted for a fourth consecutive month. New orders declined at their sharpest rate since October, with export orders also posting a solid fall.
On the positive side, employment rose for the first time in three months, although the pace of job creation was only marginal. Supplier delivery times continued to lengthen, a development that typically signals capacity pressures linked to rising demand.
In terms of prices, input cost inflation eased slightly but remained the second-fastest in nearly four years, driven primarily by higher fuel and transportation costs. At the same time, output price inflation accelerated to its quickest pace since August 2022.
Business sentiment stayed relatively subdued, weighed down by ongoing uncertainty related to the conflict in the Middle East.
