The S&P Global Flash Australia Manufacturing PMI rose to 52.1 in March 2025, up from 50.4 in February, according to the final assessment. This is the highest reading since October 2022, largely attributable to a significant upswing in production and new orders, spurred by more favorable domestic economic conditions, strategic marketing, and clients restocking their inventories. Nonetheless, export orders saw a decline due to weak demand from international markets. The rise in business activity led to a notable increase in hiring, marking a peak in job creation not seen in two years, as companies sought to restore their workforce. For the first time since May, post-production inventory levels increased, a circumstance partly attributed to delays in shipments caused by Cyclone Alfred. At the same time, purchasing activity picked up, reflecting manufacturers' optimism about future sales, despite ongoing concerns over U.S. tariffs. Although input costs remained high due to elevated raw material and transportation expenses, companies opted to moderate their selling price increases to stay competitive in an increasingly tight market.