FX.co ★ Australia Manufacturing Unchanged in June

The S&P Global Flash Australia Manufacturing PMI remained at 51.0 in June 2025, maintaining the same level as in May, indicating stagnation in new business activity. Despite subdued demand, there was a recovery in production following a brief period of contraction in the preceding month. Additionally, the manufacturing sector witnessed employment increases during this time. However, cost inflation intensified owing to higher shipping and raw material costs. In response, manufacturers curtailed purchasing activities, resulting in a further depletion of inventories as they faced escalating cost pressures. Looking forward, manufacturer sentiment has weakened, with confidence plummeting to its lowest since October 2024, amid rising concerns over economic uncertainty. Jingyi Pan, Economics Associate Director, commented: “Preliminary S&P Global Flash Australia PMI data indicated an acceleration in business activity growth in June, driven not only by a quicker expansion in services activity but also by a resurgence in manufacturing production.”