Australia’s private sector expanded more strongly in July, with the S&P Global Composite PMI rising from 51.6 to 53.6. Services led the way with a sharp rise from 51.8 to 53.8. Manufacturing returned to firmer growth at 51.6, up from 50.6.
S&P Global noted that business activity growth “hastened” at the start of Q3, supported by one of the fastest paces of new manufacturing orders in over two-and-a-half years.
However, the upbeat data came with warning signs. Business confidence slipped to an eight-month low, while manufacturers cut back on purchasing and slowed hiring. More critically, price pressures “intensified” during the month, pointing to renewed upside risks for inflation and “adding to the uncertainty for the interest rate outlook.”
