FX.co ★ Australia Composite PMI Slips from 6-Month High

Australia’s S&P Global Composite PMI slipped to 52.5 in August from a final reading of 53.2 in July, flash data showed. While this signaled a loss of momentum, it still marked the fourth expansion in private-sector activity in five months. Growth was driven by the services sector, offsetting a decline in manufacturing output. New orders rose modestly for a second consecutive month, and foreign demand improved for the first time since March, supported by stronger global orders for manufactured goods. Employment continued its nearly two-year stretch of gains, though the pace of job creation slowed to a three-month low and remained modest across sectors. Backlogs of work increased again but only slightly. Input cost inflation picked up after three months of easing, reflecting higher fuel, freight, commodity, and raw material costs. By contrast, output price inflation slowed to its weakest rate since early 2026. Business confidence improved to a six-month high on the back of expansion plans and expectations of stronger demand, although sentiment remained subdued by historical standards.