FX.co ★ Australia’s Private Sector Grows for 8th Months

The S&P Global Australia Composite PMI recorded a slight decline in May, settling at 50.5, down from 51.0 in April. This suggests that while business activity continues to grow, the pace remains marginal. This marks the eighth straight month of expansion; however, this month's growth rate is the sluggish for 2025 so far, primarily driven by the service sector, as manufacturing shows persistent weakness. The growth in new business has slowed, even with a moderate uptick in export orders. Hiring activity also experienced a decline, indicating limited capacity pressure. Business sentiment remained stable compared to April's five-month low, indicating a cautious outlook. At the same time, charge inflation decreased to its lowest point in six months, aided by a modest increase in input costs. Collectively, the data suggests a fragile and uneven recovery in Australia's private sector.