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Australia’s private sector expands as composite PMI rises to 52.6 in July

S&P Global data showed services drove the improvement and new orders returned to growth after four months of decline, with hiring at its strongest pace since April.

Reported · Written up by our desk · Major Pairs

Australia’s private sector activity strengthened in July, with the flash composite PMI rising to 52.6 from 50.4 in June, according to data from S&P Global reported by Forexlive.

The pickup signaled a second straight month of expansion and the strongest reading since the start of the year, led almost entirely by services rather than manufacturing. In services, the business activity index climbed to 53.0 from 50.5, the fastest pace of growth since January.

The survey also showed a return to new order growth after a four month run of decline, described as the longest such stretch since the start of 2024. Hiring rose at its fastest pace since April across both services and manufacturing, while cost pressures eased, with cost inflation slowing to its softest rate since February.

Forexlive said expectations may lean modestly supportive for the Australian dollar, but noted that weaker export performance and still subdued business confidence point to a domestically led recovery that is not yet broad based.

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