Australia Private Sector Growth Slows to Three-Month Low

Australia’s private sector growth slowed in September 2026, reaching a three-month low. The S&P Global Australia Services PMI Business Activity Index fell to 51.9 from 53.2 in August, slightly above the initial estimate of 51.4. Although this marked the fourth straight month of expansion, the pace of growth was the weakest since June, primarily due to a decline in new business inflows.

The revised Composite PMI also indicated a slowdown, rising to 51.3 from a preliminary 50.8 but remaining below August’s 52.7. This reflected a broader deceleration across various industries. Meanwhile, the Melbourne Institute Monthly Inflation Gauge increased by 0.3% month-over-month in September, down from 0.5% in August, suggesting that earlier cash rate hikes are starting to curb inflationary pressures.

Despite the weaker economic indicators, the S&P/ASX 200 benchmark index gained 0.4% to 8,714 in early Monday trading, extending its upward trend for a second consecutive session. Most sectors saw advances. However, the Australian dollar remained below $0.70, hovering near multi-month lows due to a stronger US dollar and rising Treasury yields.

The data also showed that Australia’s manufacturing PMI contracted to 49.6 in September, the sharpest decline in 21 months, while the country’s trade surplus shrank to its smallest level since May as import growth outpaced exports.