Australia Manufacturing PMI Drops to 49.6 in September, Signaling Contraction

Australia's manufacturing sector fell into contraction in September as the S&P Global Australia Manufacturing PMI dropped to 49.6 from 52.0 in August, marking a 21-month low. The downturn was fueled by a contraction in new orders and export demand for the first time since June, while production output fell for a second straight month at its steepest pace since December 2024. Factory headcounts decreased for the first time in five months, and selling price inflation slowed to a seven-month low amid competitive pressures, weighing on Australian Dollar expectations.