Australia 200 Pressured as Unemployment Hits 4.5% and PMIs Contract

Australia's economic outlook deteriorated sharply by May 21 as the unemployment rate rose to 4.5% in April and flash PMIs signaled renewed contraction. After a modest Westpac consumer sentiment rise to 83 on May 19, business conditions worsened with the composite PMI falling to 47.8. New orders contracted at the fastest pace since September 2021, private-sector employment declined for the first time since late 2024, and business sentiment hit record lows, raising downside risks for the Australia 200 amid elevated input costs and RBA policy uncertainty.