Australia Composite PMI Back in Expansion, Price Pressures Highest in Nearly Four Years

Australia’s S&P Global Flash Composite PMI rose to 50.1 in April from 46.6, signaling a return to modest expansion led by a services rebound (50.3 vs 46.3). Manufacturing returned to expansion on the headline PMI (51.0 vs 49.8) despite manufacturing output slipping further to 48.2. Input-cost inflation accelerated to its highest level since August 2022 and output prices rose at the fastest pace in 3½ years, driven largely by higher fuel and shipping costs tied to the Middle East conflict. Markets should view the release as a mixed macro signal for the AUD: near-term support from stronger services and rising inflation pressures that could influence RBA policy pricing, offset by weak real manufacturing output and ongoing supply-chain strains that temper the recovery.