FX.co ★ Australia Private Sector Seen Expanding for 16th Month

The S&P Global Flash Australia Composite PMI improved to 55.5 in January, up from 51.0 in December, marking the sixteenth consecutive month of expansion. This reading matches the joint-highest level since April 2022, a milestone previously reached in August 2025. There was a significant acceleration in services activity as evidenced by the Services Business Activity Index climbing to 56.0 from 51.1. The Manufacturing PMI also saw an increase, rising to 52.4 from 51.6, fueled by a boost in both goods and services new business. Particularly notable was the resurgence in overseas orders for manufactured goods, leading to the fastest growth in new export orders seen in three-and-a-half years. Business sentiment remained optimistic and employment levels continued to rise as firms increased hiring to meet workloads. However, the growth rate of jobs did ease compared to December, with outstanding workloads experiencing a slight increase for the first time in nine months. Inflation pressures, both for input costs and selling prices, eased from December levels, though the rise in manufacturing input prices was noted as a potential risk for inflationary pressures to intensify once more.