Australia Manufacturing Sector Hits Strongest Growth Since January

Australia's manufacturing sector expanded at an accelerated pace in July 2026, with the S&P Global Manufacturing Purchasing Managers' Index (PMI) climbing to 52.0 from 51.5 in June. This represents the strongest reading since January and marks the fourth consecutive month of growth for the sector.

S&P Global Market Intelligence reported that the uptick was driven by marginal increases in new orders and production, with production rising for the first time in six months. Employment also grew at its fastest rate since the start of the year.

Despite these gains, the recovery remains fragile. Approximately 40% of firms cited higher input costs, specifically fuel and shipping expenses linked to conflict in the Middle East. Additionally, new export orders declined as firms faced increased competition and rising prices. Andrew Harker of S&P Global Market Intelligence noted that the recovery remained only tentative, with growth still marginal amid ongoing price and supply pressures.