The S&P Global Australia Manufacturing PMI fell to 51.4 in September 2025 from 53 in August, indicating that the sector continued to expand but at a slower pace. Production growth eased amid a slight decline in new orders, including exports, while optimism among goods producers softened. Despite weaker demand, companies hired additional staff to manage ongoing workloads and clear backlogged orders, marking the seventh consecutive month of workforce growth. Purchasing activity and inventory levels continued to rise, although the rate of increase for both slowed compared to August. Input costs and output prices rose further, reflecting ongoing inflationary pressures. Foreign demand weakened, with panellists citing US tariffs as a factor dampening orders from both US and other major trading partners.