In December 2025, the S&P Global Australia Manufacturing PMI recorded a reading of 51.6. This figure represents a slight decline from the preliminary estimate of 52.2 but remains consistent with the November data. It marks the highest level in three months, reflecting increases in both production and new orders, albeit at more moderate rates. However, international sales declined for the fourth month in a row, affected by budget constraints overseas. Meanwhile, employment surged at its fastest rate in nine months. Contrary to this, inventory levels for purchases decreased for the third consecutive month. The longest supplier delivery times were noted since November 2024, caused by supply shortages and logistical setbacks. Regarding pricing, input cost inflation rose due to higher expenses for raw materials and freight, resulting in modest yet below-average increases in output prices. Lastly, business confidence strengthened to its highest point in four months, driven by anticipation of new product launches and expansion plans.