The S&P Global Flash Australia Manufacturing PMI held steady at 51.0 in June 2025, unchanged from May, as new business activity stalled. While demand remained subdued, production returned to growth after a brief contraction in the previous month. The manufacturing sector also recorded job gains during the period. However, cost inflation intensified due to rising shipping and raw material expenses. In response, manufacturers cut back on purchasing activity, leading to a further depletion of inventories amid mounting cost pressures. Looking ahead, sentiment among manufacturers weakened, with confidence falling to its lowest level since October 2024, reflecting heightened concerns about economic uncertainty. Jingyi Pan, Economics Associate Director, noted: “Early S&P Global Flash Australia PMI data revealed that business activity growth accelerated in June, buoyed not only by faster services activity expansion but also a renewed rise in manufacturing production."