FX.co ★ Australia Factory Activity Seen Expanding for 3rd Month

The S&P Global Australia Manufacturing PMI increased to 52.4 in January 2026, up from 51.6 in December, as indicated by preliminary estimates—reflecting ongoing expansion. This growth was spurred by a resurgence in both new orders and output, with an uptick in new business across both goods and services sectors, and a notable rise in international orders for manufactured goods bolstering overall demand. Looking ahead, sentiment about future output remains positive, supported by plans for expansion and anticipated enhancements in economic conditions expected to boost sales. Consequently, manufacturers augmented their hiring efforts, although the overall pace of employment growth was slower compared to December. Additionally, outstanding workloads rose slightly for the first time in nine months. Purchasing activities increased, and average input costs grew, while the inflation rate for selling prices decreased compared to December, despite indications that rising input costs in manufacturing could pose a risk for renewed inflationary pressure.