Australia’s private sector lost momentum in May, with the S&P Global Manufacturing & Services Composite PMI easing to 48.70 from 50.40, according to data updated on 2 June 2026. The move takes the index below the 50-point threshold that separates expansion from contraction, signalling a modest deterioration in overall business activity compared with the previous month.
On a month-over-month basis, the latest reading suggests that conditions have weakened after a marginal expansion previously. In the prior period, the PMI at 50.40 indicated that output was just above stagnation; the slip to 48.70 now points to softer demand and activity across both manufacturing and services during May.
The back-to-back comparisons underscore a shift in momentum: while the earlier month showed slight growth relative to the month before it, May’s downturn reflects mounting headwinds for Australia’s private sector. Investors and policymakers are likely to monitor upcoming releases closely to gauge whether this marks the start of a more prolonged slowdown or a temporary pullback in activity.