FX.co ★ Australia Manufacturing Contracts for the 1st Time in 2025

In October 2025, the S&P Global Australia Manufacturing PMI decreased to 49.7 from 51.4 in September, indicating the first contraction in manufacturing activity this year. This decline was primarily attributed to a drop in demand, as new orders fell at the fastest rate in ten months. This trend was influenced by reports of softer market conditions and sufficient inventory levels among clients. Additionally, export demand decreased, particularly from Asia-Pacific markets. The decline in new orders resulted in the first reduction in employment in eight months, and manufacturers scaled back their purchasing activities. Despite rising input costs at the sharpest rate in six months, selling price inflation moderated. Nevertheless, business confidence remained positive, with the Future Output Index staying above the pivotal 50.0 mark.