Australia business activity grows in Aug at fastest pace in over 3 yrs – PMI

Published 21/08/2025, 00:56
Updated 21/08/2025, 01:08
© Reuters.

Investing.com-- Australia’s business activity in August expanded at the fastest rate since April 2022, supported by strong gains in both manufacturing and services, a private survey showed on Thursday.

The S&P Global Flash Composite Purchasing Managers’ Index (PMI) rose to 54.9 in August from 53.8 in July, staying above the 50 mark that separates growth from contraction for an 11th straight month.

The services activity index climbed to 55.1 from 54.1, while manufacturing strengthened to 52.9 from 51.3 -- both rising at the quickest pace in nearly 40 months.

New orders, including exports, helped drive the acceleration, with firms reporting fresh demand from the United States, Europe, and Asia-Pacific markets.

Encouragingly, input cost and output price inflation eased, offering some relief after recent price pressures.

"While domestic factors, including the easing of interest rates, supported better conditions in August, the renewed rise in export business suggested that external conditions have also started to pick up," the survey added.

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