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Australia PMI Composite rises to 52.6 on stronger services and demand

The S&P Global Flash Composite PMI increased from 50.4 to 52.6 in July, with new orders up for the first time in five months.

Reported · Written up by our desk · Central Banks

Australia’s private sector gained momentum in July, pushing the S&P Global Flash Composite PMI up to 52.6 from 50.4, the highest reading since the start of the year, Action Forex said.

The services sector drove much of the improvement, with the Services PMI Business Activity Index climbing to 53.0 from 50.5, while manufacturing edged higher to 51.7 from 51.5.

The report pointed to a firmer start to the third quarter, as business activity grew above the survey’s long run average and new orders increased for the first time in five months, suggesting domestic demand was beginning to recover even as overseas weakness persisted.

Action Forex also highlighted moderating input cost pressures, which it described as further evidence that disinflation remains on track, though businesses stayed cautious due to uncertainty around the global economy and the trade environment.

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