Australia’s February flash PMIs cooled throughout the board, signalling slower development however firmer inflation pressures.
Abstract:
-
All three S&P International Australia flash PMIs fell from January, displaying a transparent lack of momentum after a robust begin to 2026.
-
Composite Output eased to 52.0 (Jan 55.7), nonetheless signalling development for a seventeenth straight month.
-
Companies exercise slowed to 52.2 (Jan 56.3), however continued to outperform manufacturing.
-
Manufacturing output dipped to 51.5 (Jan 52.3), sustaining enlargement however at a softer tempo.
-
New enterprise development cooled from January’s surge; exports rose solely marginally.
-
Hiring accelerated (providers strongest in almost three years), whereas backlogs had been flat general.
-
Price and selling-price inflation intensified, rising to the best since September (per the discharge commentary).
-
Enterprise confidence stayed optimistic however fell to its weakest in round 18 months.
Australia’s personal sector stored increasing in February, however at a noticeably weaker tempo as all three S&P International flash PMI readings fell again from January’s sturdy prints.
The Flash Australia Composite PMI Output Index eased to 52.0 in February from 55.7 in January, remaining above the 50-mark that separates development from contraction and increasing the enlargement run to 17 consecutive months. The step-down indicators that the burst of early-year momentum has cooled, with S&P International pointing to a broad-based slowdown throughout output and new enterprise.
The slowdown was seen throughout the sector surveys. The Flash Australia Companies PMI Enterprise Exercise Index fell sharply to 52.2 from 56.3, whereas the Flash Australia Manufacturing PMI eased to 51.5 from 52.3. Each sectors continued to broaden, however providers once more posted the stronger of the 2 upturns even after the February pullback.
New enterprise rose for a nineteenth straight month however slowed from January’s 45-month excessive, with respondents citing secure buyer bases, new contract wins and a common pick-up in demand circumstances. Export enterprise continued to rise however solely marginally general, with manufacturing export development cooling greater than providers.
On the labour entrance, hiring accelerated. Non-public-sector employment development was described because the strongest in virtually a 12 months, with providers job creation the strongest in almost three years, whereas manufacturing hiring was the weakest in 4 months. Regardless of stronger hiring, the amount of excellent work was unchanged in February as falling manufacturing backlogs offset an increase in service backlogs.
Inflation indicators firmed. The survey described a considerable intensification in price pressures, led by stronger input-price will increase for items producers, linked to provider costs and uncooked supplies together with metals, whereas providers companies cited increased wages and electrical energy prices. On the composite stage, each price and cost inflation had been reported at their highest since September, with providers suppliers extra aggressive in elevating costs than producers.
Enterprise confidence remained optimistic however slipped to its weakest in simply over a year-and-a-half amid issues about financial circumstances, worldwide uncertainty and competitors. S&P International economist Eleanor Dennison stated the personal sector “wasn’t in a position to preserve the pace of development” seen in January, with softer output and orders development throughout each manufacturing and providers, stronger job creation, and a re-acceleration in value pressures.
