The S&P Global Australia Composite PMI rose to 53.8 in July from 51.6 in June, marking the strongest expansion in private sector activity since April 2022. This was the tenth consecutive monthly increase, driven by a faster rise in services activity and a return to growth in manufacturing output. New orders also picked up, although export business continued to decline. Firms responded to rising workloads by hiring at a quicker pace, helping to reduce backlogs. Cost inflation accelerated, and stronger demand led to the fastest increase in average selling prices in nearly two years. Despite these pressures, overall business sentiment remained positive, though confidence slipped to an eight-month low.