According to Judo Bank/S&P Global, the seasonally adjusted Australian Manufacturing Purchasing Managers Index (PMI) rose from 47.2 to 47.4 in July, reaching a two-month high. The manufacturing output PMI fell from 46.8 to 46.3, hitting a four-month low.

In the same month, the initial Australian service PMI fell from 51.2 to 50.8, hitting a six-month low. The initial Australian Composite PMI fell from 50.7 to 50.2 in July, marking a six-month low.

In July, private sector operations in Australia were close to stagnation. Companies faced a decline in new orders for two consecutive months, and the decline accelerated slightly. Employment rose, and inflation intensified. Weak demand hit business sentiment, and corporate confidence fell to its lowest level since the outbreak of the COVID-19 pandemic. Within the period, the growth of service activities slowed down, and the decline of manufacturing production intensified.

Within the period, the decline in new export orders was the sharpest in nearly four years. Companies continued to recruit additional staff, but the pace of recruitment slowed to its weakest level in nearly three years. However, increasing recruitment in the face of declining new orders means clearing more backlog work, with the clearing speed hitting the fastest since November last year. The rise in input costs accelerated to a 16-month high, mainly due to faster inflation in the service industry and pressure from minimum wage increases. The inflation of output charges rose only slightly.