The S&P Global Australia Manufacturing PMI fell to 51.6 in September 2025 from 53 in August, marking the eighth consecutive month of expansion. New orders contracted at the fastest pace in eight months, while export demand weakened following a brief uptick in August, with manufacturers citing US tariffs as a key headwind. Business confidence dropped to a one-year low amid trade uncertainties and softer global conditions. Input costs continued to rise at an above-average rate, driven partly by US trade policies, but firms reported limited ability to pass these increases on, as selling price inflation moderated amid intense competition.
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