Australia’s S&P Global Composite Purchasing Managers’ Index eased to 52.5 in August from 53.2 in July, according to a flash estimate released on August 21, 2025, marking a softer but still expansionary pace of private-sector growth and the 17th straight month above the 50 threshold. Services remained the main driver at 52.2, down from 52.8, while manufacturing edged up to 49.5 from 49.4 yet stayed in marginal contraction amid weak global demand and elevated input costs. The reading fits a broader cooling picture after June-quarter GDP growth of just 0.2% and a rise in unemployment to 4.2% in July. The Reserve Bank of Australia has held the cash rate at 4.35% since November 2023, with markets pushing rate-cut bets out toward mid-2026 as inflation remains above the 2–3% target. KPMG Australia chief economist Sarah Hunter said the 52.5 composite is consistent with roughly 0.4% GDP growth in the third quarter, while faster rises in input costs and output prices keep policy complicated. Final PMI figures, retail sales, inflation, and jobs data, plus the RBA’s September 2 meeting, will be closely watched.