Australian Private Sector Growth Continues, But at Slower Pace

Australia's private sector growth continued in August, but at a slightly slower pace. The S&P Global Composite Purchasing Managers' Index (PMI) fell to 52.5, down from 53.2 in July.

The services sector remained the main driver of expansion, with its PMI at 52.2, down from 52.8 in July. Manufacturing also expanded, but at a slower rate, with its PMI at 49.5, up slightly from 49.4 in July.

Economists note that while the PMI reading is softer, it still suggests the economy is avoiding a sharp downturn. The Reserve Bank of Australia (RBA) has held the cash rate at 4.35% since November 2023, and market expectations for a rate cut have been pushed back to mid-2026.