Flash estimates showed manufacturing activity extended its expansion in July, with output supported by stronger domestic demand and new client wins even as export orders kept falling.
Australia’s manufacturing PMI rose to 51.7 in July 2026 from 51.5 in the previous month, according to flash estimates, marking a fourth consecutive month of expansion and the strongest growth since January. The improvement was supported by the first increase in new orders in five months, helped by firmer domestic demand and new client wins, while employment grew at the fastest pace since April. Export orders continued to decline, pointing to ongoing weakness in external demand. Cost pressures eased to their softest level since February despite higher fuel, oil, raw material and wage costs, and manufacturers increased selling prices more slowly than in June. Business confidence improved only slightly and remained subdued amid economic uncertainty.