FX.co ★ Australia’s Private Sector Growth Slows to 3-Month Low

The S&P Global Australia Composite PMI experienced a modest increase, reaching 50.6 from 51.0 in April. This represents the weakest performance so far in 2025, tied with February. A slight expansion was noted in both the services and manufacturing sectors, though the growth rate decelerated. The rise in output was bolstered by ongoing increases in new orders, marking the tenth consecutive month of growth, albeit at the slowest rate seen this year. Employment emerged as a positive area, with job creation advancing for the fifth consecutive month, fueled by increased new orders and buoyant hiring expectations. However, new export orders saw only a marginal rise, and for the first time in three months, backlogs of work decreased. Input cost inflation eased to a three-month low, yet firms continued to encounter significant cost pressures, particularly in raw materials and staffing.