FX.co ★ Australia Manufacturing Gains Momentum in July

In July, the S&P Global Australia Manufacturing PMI increased to 51.6, compared to 50.6 in June, according to preliminary data. There was a notable upturn in new orders for manufactured goods, leading to the most significant overall rise in new business in over three years. However, export orders in manufacturing continued to contract, albeit at a slower rate than observed in June. In response to the growing demand, manufacturers increased their workforce, which further helped to reduce the backlog of work. While input cost inflation in the sector saw a slight decrease, overall prices charged by manufacturers still climbed as they transferred some of the cost pressures to clients. Purchasing activity experienced a decline for the third consecutive month, with inventories of inputs being drawn down. Overall, the data indicated a robust uptick in manufacturing momentum, although firms continue to exercise caution in the face of global uncertainty.