FX.co ★ Australia Manufacturing Sector Contracts for 1st Time in 6 Months

The S&P Global Australia Manufacturing PMI slipped to 49.3 in September 2026 from 52.0 in August, according to flash estimates, signalling the first contraction in the sector since March. Output dropped sharply, with the production index falling to 46.4 from 49.6, the steepest decline in 21 months, as both domestic new orders weakened and external demand remained subdued. New export orders fell for the fifth time in six months, and manufacturers reported renewed supply-chain strain, with input delivery times lengthening once again. On the price front, input cost inflation moderated compared with August despite higher energy and fuel prices associated with the conflict in the Middle East, while output price inflation stayed elevated. Business confidence deteriorated to a three-month low, reflecting mounting concerns over economic conditions, cost pressures, demand prospects, and customer retention.