FX.co ★ Australia’s Manufacturing Slump Eases Slightly as S&P Global PMI Edges Up to 49.7 in October

Australia’s factory sector showed a marginal improvement in October, with the S&P Global Manufacturing Purchasing Managers’ Index (PMI) ticking up to 49.7 from 49.6 in September 2026, according to data updated on 22 October 2026.

Despite the uptick, the indicator remains below the 50.0 threshold that separates expansion from contraction, signaling that Australian manufacturing is still in a mild downturn. The 0.1-point increase suggests that while conditions remain under pressure, the pace of contraction has eased slightly compared with September.

Investors and policymakers are likely to view the latest reading as a sign of tentative stabilization rather than a turnaround, with markets waiting to see whether subsequent months can push the index sustainably back into expansionary territory.