FX.co ★ Australia Composite PMI Revised Higher

Australia’s S&P Global Composite PMI for July was revised up to 53.2 from the flash estimate of 52.6, rising from 50.4 in June to its highest level since January. The latest reading points to a second straight month of private-sector expansion, supported by the strongest growth in services activity in six months and a renewed increase in manufacturing output.

New orders expanded for the first time in five months, while the pace of decline in export sales slowed. Employment rose solidly for a second consecutive month, but stronger demand led to a fresh buildup of backlogs, underscoring capacity pressures.

On the inflation front, input costs continued to rise sharply, though the rate of increase eased to a five-month low from April’s peak. In contrast, output price inflation accelerated at the start of the third quarter, returning to levels close to those recorded in April and May.

Business confidence rebounded from June’s 31-month low to its highest point since just before the Middle East conflict in February, indicating a marked improvement in sentiment heading into the second half of the year.