FX.co ★ Australia Private Sector Growth Hits 27-Month High in July

In July, the S&P Global Australia Composite PMI rose to 53.6, up from 51.6 in June, marking the highest level since April 2022 and indicating the tenth consecutive month of expansion. This growth was supported by the first increase in manufacturing output in three months and the most rapid expansion of services activity in 16 months. Strengthened by a growing customer base and effective business development, new business inflows resulted in the most significant surge in total new orders in over three years. Although export demand remained subdued, this decline was limited to the manufacturing sector, with services exports stabilizing. The increase in demand encouraged companies to boost hiring, thereby reducing the backlog of work for the third month in a row. Despite the acceleration of input cost inflation, especially within the services sector, businesses responded by raising selling prices more aggressively. However, despite this robust growth momentum, business confidence fell to its lowest point since November due to mounting concerns over economic uncertainty.