The latest survey from S&P Global, released on Monday, indicates that Australia's manufacturing sector returned to expansion territory in January, registering a PMI of 50.2. This marks an increase from December's 47.8, surpassing the critical threshold of 50, which distinguishes growth from contraction.
As the year 2025 commenced, manufacturing production experienced growth, with companies progressing through their existing order backlogs. Although the increase in output was slight, it was notable as the first rise in production since November 2022.
In January, the contraction rate of new orders eased to its slowest in nearly two years. Despite underlying challenges such as weak demand and reduced client spending influencing new orders negatively, some firms reported emerging signs of market improvements. However, export orders continued to decline significantly, affected by subdued international business conditions and ongoing trade uncertainties.
