The S&P Global Australia Manufacturing PMI was revised down to 51.0 in February 2026 from a preliminary estimate of 51.5, marking the weakest reading in four months and down from 52.3 in January. While the index remained above the 50-point threshold that separates expansion from contraction, the data signaled a slower improvement in operating conditions and a softening in overall manufacturing sector growth.
New orders from both domestic and overseas markets increased, but at a more subdued pace, contributing to a slight decline in output. Employment growth also lost momentum, reflecting a lack of capacity pressures, and firms reported lower inventory levels amid weakening business confidence.
At the same time, supply conditions deteriorated further in February. However, cost and output price inflation showed tentative signs of easing compared with the beginning of the year.