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Australia's September Composite PMI Falls to 50.8 as Growth Momentum Fades at End of Q3
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According to S&P Global's flash data released on September 23, Australia's composite Purchasing Managers' Index (PMI) fell to 50.8 in September from 52.7 in August, marking a recent low. While still above the 50 threshold indicating expansion, the pace of growth has slowed significantly. The services sector PMI dropped to 51.4 from 53.2, providing less support to the overall index. Manufacturing PMI fell sharply to 49.3 from 52.0, entering contraction territory for the first time since March. S&P Global economist Eleanor Dennison noted that manufacturing is the weak area, with goods producers facing increased supply chain pressures. Positive signs include easing inflationary pressures, which could allow for policy adjustments. Business confidence remained optimistic but weakened marginally, with Dennison citing layoffs, rising costs, softening demand, and renewed export weakness as challenges for the private sector.
Source report
Beijing, September 23 (Xinhua Finance) — According to the latest data from S&P Global, Australia's Composite Purchasing Managers' Index (PMI) for September recorded a preliminary reading of 50.8, a notable decline from 52.7 in August and hitting a recent low.
Although the index remains above the 50.0 threshold—indicating continued expansion in private sector output—the pace of growth has narrowed significantly.
S&P Global noted that the Australian economy showed signs of weakening toward the end of the third quarter, with September data continuing to reflect a loss of growth momentum. Despite the slowdown, the economy maintained an expansionary trend during the quarter, marking an improvement compared to the subdued performance in the second quarter.
Services Sector Growth Moderates
According to the sub-index data, the services sector—Australia's primary growth engine—saw its PMI preliminary reading fall from 53.2 in August to 51.4 in September. S&P Global analysis suggests that even within the services sector, the recovery momentum has weakened compared to recent months, providing less support to the overall index.
Manufacturing Falls into Contraction
In contrast to the modest expansion in services, manufacturing emerged as a clear drag on September's data. Australia's Manufacturing PMI preliminary reading dropped sharply from 52.0 in the previous month to 49.3—falling below the 50.0 threshold for the first time since March this year and entering contraction territory. This marks the first negative reading for the sector's overall index and business sentiment indicators in seven months.
Economist Comments
Eleanor Dennison, Economist at S&P Global Market Intelligence, commented:
"Manufacturing is the weak spot in the current economy. Goods producers are reporting increased supply chain pressures, which may constrain production activity. On the positive side, the data also shows that inflationary pressures have eased, which could provide some room for future policy adjustments."
Business Confidence Weakens
Although business confidence remained optimistic in September, expectations for growth prospects have marginally weakened. Dennison noted that the decline in confidence coincides with several negative indicators: layoffs, rising cost pressures, signs of softening demand, and renewed weakness in exports. These factors collectively present challenges to the current operating environment for Australia's private sector.
Editor: Ma Mengwei
Source
新华财经Eastern
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Australia’s composite PMI falls to 50.8 in September, growth slows sharply