The S&P Global Australia Manufacturing PMI fell to 49.7 in October 2025 from 51.4 in September, marking a return to contraction after nine consecutive months of expansion. New orders for goods fell at the fastest pace so far this year, while export demand weakened after a brief uptick in August as manufacturers cited subdued global trade conditions. Business confidence dropped to an 11-month low amid trade uncertainties and softer external demand. Manufacturing input prices rose at the quickest pace since April, driven by higher input material and transport costs and supply disruptions, but firms reported limited ability to pass these increases on as selling price inflation moderated amid heightened competition.