The S&P Global Australia Composite PMI climbed to 53.6 in July from 51.6 in June, the highest level since April 2022, signaling the 10th straight month of expansion. The improvement was fueled by the first rise in manufacturing output in three months and the fastest growth in services activity in 16 months. New business inflows strengthened, driven by an expanding customer base and successful business development, leading to the sharpest increase in total new orders in over three years. While export demand remained soft, the decline was confined to manufacturing, as services exports stabilized. Stronger demand led firms to increase hiring, which helped reduce backlogged work for the third consecutive month. Input cost inflation accelerated - particularly in the services sector - prompting companies to raise selling prices at a quicker pace. Despite the solid growth momentum, business confidence slipped to its lowest level since November amid rising concerns over economic uncertainty.