Australian Preliminary Manufacturing PMI for February 50.6 (prior 50.2)

Manufacturing PMI: 50.6, 27-month high

• prior was 50.2

Services PMI 51.4

• prior 51.2

Composite 51.2

• prior 51.1

6-month high

Flash Australia PMI Composite Output Index(1): 51.2 (Jan: 51.1). 6-month high. Flash Australia Services PMI Business Activity Index(2): 51.4 (Jan: 51.2). 6-month high. Flash Australia Manufacturing Output Index(3) : 50.1 (Jan: 50.5). 2-month low. Flash Australia Manufacturing PMI(4) : 50.6 (Jan: 50.2). 27- month high.

Nice to see improvement, although it is limited.

Commenting on the flash PMI data, Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence said:

• “February’s S&P Global Flash Australia PMI data outlined further improvements in private sector business conditions. Although modest, the expansion in private sector output was the quickest in six months to suggest that economic conditions further improved in the opening quarter of 2025. Moreover, the improvements were broad-based as faster services new business growth was accompanied by a renewed rise in goods new orders, the first since November 2022.
• “That said, a fall in business sentiment to the lowest level since last October provided mixed signals for nearterm economic performance. Anecdotal evidence reflected concerns over the economic outlook despite business activity rising over February and interest rates being lowered during the survey period. This sense of caution was also prevalent in firms’ reluctance to fully pass on cost increases, leading to lowered selling price inflation in February.”

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Final February data will be published on 3 March for manufacturing and on 5 March for services and composite indicators.