FX.co ★ Australia Manufacturing PMI Growth Slows in June

In July, the S&P Global Australia Manufacturing PMI slightly declined to 51.3 from June's 51.6, indicating a modest yet persisting expansion in the manufacturing sector. This period saw companies facing challenges such as weak demand and reduced staffing. The slight growth observed was primarily driven by a resurgence in production levels, marking the strongest output performance since May 2022, although the growth remained moderate. Despite this, new orders continued to fall, and employment figures declined further, highlighting ongoing demand-side challenges. However, there was a notable increase in business confidence, reaching its highest point in over three years. This optimism was fueled by positive expectations for future economic conditions and potential trade opportunities. Input costs increased for the first time in three months, influenced by material shortages and shipping delays. Nonetheless, strong competitive pressures meant that most firms opted to absorb these costs, leading to a reduction in factory gate prices for the third consecutive month. Manufacturers remained hesitant to pass these rising input costs on to customers.