FX.co ★ Australia’s Private Sector Momentum Cools as Composite PMI Slips in February

Australia’s private sector lost some steam in February, with the combined Manufacturing & Services PMI easing to 52.00 from 55.70 in January 2026, based on data updated on 19 February 2026. While the index remains above the 50-point threshold that separates expansion from contraction, the month-over-month decline signals a notable moderation in growth momentum.

The February reading compares unfavorably with January’s stronger performance, when the indicator had reached 55.70, pointing to more robust month-on-month improvement at the start of the year. The latest data suggest that both manufacturing and services are still expanding, but at a slower pace than in the previous month, as underlying demand and activity appear to be normalizing after a brisk start to 2026.

On a month-over-month basis, the “Actual” figure for February (52.00) reflects a weaker expansion than the “Previous” comparison period, which captured January’s more pronounced improvement versus December. Markets and policymakers will be watching upcoming releases closely to determine whether February marks the start of a softer trend or a temporary pause in Australia’s private-sector recovery trajectory.