FX.co ★ Australia's Private Sector Set for Slower Growth in February

The S&P Global Flash Australia Composite PMI slipped to 52.0 in February from 55.7 in January, indicating the economy continued to expand for a seventeenth consecutive month, though at a slower pace than at the start of 2026. Services activity moderated, with the Services Business Activity Index easing to 52.2 in February from 56.3 in January. Manufacturing conditions also softened, as the Manufacturing PMI declined to 51.5 from 52.3, reflecting cooler new business growth across both goods and services and only a marginal increase in overseas orders for manufactured goods.

Business confidence remained in positive territory but weakened to its lowest level since mid-2024. Employment growth, however, accelerated, with firms increasing hiring to meet current workloads and job creation rising to an 11-month high. Outstanding business volumes were unchanged after an increase in January. Meanwhile, input cost pressures and output price inflation intensified compared with January. Rising manufacturing costs were highlighted as a key upside risk, with both input costs and selling prices climbing to their highest levels since September 2025.