FX.co ★ Australia’s Manufacturing Momentum Cools as S&P Global PMI Slips Toward Stagnation in March

Australia’s manufacturing sector lost some momentum in March 2026, with the S&P Global Manufacturing PMI easing to 50.1 from 51.0 in February. The latest reading, updated on 23 March 2026, leaves the index only marginally above the 50.0 threshold that separates expansion from contraction.

The drop from February’s level suggests that growth in the manufacturing sector is nearing stagnation after a modest expansion earlier in the year. While the PMI remains in positive territory, the softer March figure points to weaker underlying conditions, with output and new orders likely facing increased headwinds.

With the index now hovering just above neutral, market participants and policymakers will be watching upcoming data closely for signs of whether Australia’s manufacturing activity can regain traction or is at risk of slipping into contraction in the coming months.