The S&P Global Australia Manufacturing PMI fell to 49.6 in September 2026, surpassing the preliminary estimate of 49.3 but down from 52.0 in August. This marked the sharpest decline in 21 months, driven by a renewed fall in new orders, which declined for the first time in three months amid intense competition, rising prices and weaker demand. New export orders also contracted after rising in August. Output fell at the fastest pace since December 2024, while manufacturing employment declined for the first time in five months. Backlogs fell for the 17th straight month. Firms also reduced purchasing activity at the fastest pace in four months. Supplier delivery times lengthened further due to Middle East shipping disruptions and severe weather in North Asia. Input cost inflation eased slightly but remained elevated, while output price inflation slowed to its weakest in seven months. Business confidence fell to a four-month low.