Australia manufacturing PMI (final): 51.0 (prev 51.5)

Australia manufacturing PMI (final): 51.0 (prev 51.5)

Australia Manufacturing PMI Eases to 51.0 in February 2026, Reflecting Slight Slowdown in Expansion

Australia’s manufacturing sector expanded at a slightly reduced pace in February 2026, with the final S&P Global Manufacturing PMI registering 51.0, down from 51.5 in January according to Mitrade Insights. The reading, though below the preliminary estimate of 51.5 according to Mitrade Insights, remains above the 50.0 threshold that separates growth from contraction, indicating continued, albeit moderated, expansion.

The slowdown was driven by weaker momentum in output and new orders, which grew at slower rates compared to the previous month according to Mitrade Insights. Foreign sales also declined for a fourth consecutive month, constrained by overseas budgetary pressures according to Trading Economics. However, employment expanded at the fastest pace in nine months, reflecting ongoing labor market strength according to Trading Economics. Input cost inflation remained elevated due to higher raw material and freight expenses, though output price increases moderated according to Trading Economics.

Supplier delivery times lengthened sharply, driven by persistent supply shortages and logistical delays according to Trading Economics. Meanwhile, purchasing activity declined for a third month, and input inventories fell at a notable pace according to Trading Economics. Despite these challenges, business sentiment improved to a four-month high, fueled by expectations of product launches and expansion plans according to Trading Economics.

Globally, Australia’s manufacturing performance outpaced key trading partners. In February 2026, the U.S. ISM Manufacturing PMI contracted at 49.5, while Japan’s au Jibun Bank PMI stood at 48.2 according to BitcoinWorld analysis. Australia’s sector benefits from proximity to Asian markets, resource abundance, and government support for advanced manufacturing according to BitcoinWorld analysis.

The PMI’s decline to 51.0 signals a potential moderation in the sector’s growth trajectory. However, sustained expansion—now in its 11th consecutive month—supports broader economic stability and employment according to BitcoinWorld analysis. With input cost pressures easing slightly and export order strength persisting according to BitcoinWorld analysis, the sector remains a key contributor to Australia’s economic resilience amid global uncertainty.

Trading Economics: S&P Global Australia Manufacturing PMI data.
BitcoinWorld analysis: BitcoinWorld analysis of February 2026 PMI trends.
Mitrade Insights: Mitrade Insights on preliminary and final PMI readings.