Australia’s private sector recorded its strongest expansion in more than three years this month, according to fresh S&P Global Purchasing Managers Index (PMI) data released on Thursday.
The August flash composite PMI — which tracks both manufacturing and services — rose to 54.9 in August from 53.8 in July, marking the highest reading since early 2022. Any figure above 50 signals expansion.
Services lead momentum
The services sector continued to drive overall growth, with the Service PMI climbing to 55.1 from 54.1 a month earlier. S&P Global noted that new business inflows, including demand from overseas markets, supported the fastest pace of growth since April 2022.
Manufacturing activity also strengthened. The PMI for the goods-producing sector rose to 52.9 from 51.3, the sharpest uptick in nearly three years. Firms reported higher export orders and an increase in output, pointing to a more broad-based recovery.
Price pressures ease
Encouragingly for policymakers, the survey showed input cost and output price inflation easing in both sectors. Companies cited lower raw material costs and softer wage pressures, helping to bring overall price growth to its weakest level since late 2020.
The data suggest the economy is gaining traction as interest rate cuts filter through and external demand improves. While risks remain from global trade frictions and commodity price swings, economists say today’s figures underscore resilience in the private sector heading into year-end.