19.02.202622:15:05UTC+00Australia Factory Activity Seen Expanding for 4th Month

The S&P Global Australia Manufacturing PMI slipped to 51.5 in February 2026 from 52.3 in January, according to flash estimates, indicating that the sector remained in expansionary territory but grew at a slower pace. The moderation was driven by softer increases in both new orders and output, as overall new business cooled from January’s 45-month high and export demand rose only marginally. Manufacturers reported a loss of momentum in line with a broader slowdown across the private sector.

Expectations for output over the coming year stayed positive, underpinned by expansion plans and hopes of stronger demand. However, sentiment fell to its lowest level in just over eighteen months amid concerns about the economic outlook and intensified competition. Firms continued to add staff, though manufacturing employment growth weakened to a four-month low, and backlogs of work were broadly unchanged.

On the price front, input costs increased at the fastest rate in ten months, reflecting higher supplier and raw material prices. In response, factory gate charges also rose more quickly, with selling price inflation accelerating to its highest level since September of the previous year.