Australia Manufacturing PMI Holds at 49.6 in October as Demand Weakens and Costs Rise

Australia's manufacturing sector contracted for a second straight month in October, with the S&P Global Australia Manufacturing PMI holding unchanged at 49.6, matching its lowest reading since December 2024. The persistent downturn was driven by a sharp drop in new orders, which declined at the steepest pace in nearly two years amid subdued domestic demand and rising borrowing costs. In response, manufacturers reduced workforce capacity, cutting employment at the fastest rate in seven months. Meanwhile, Middle East shipping disruptions and port congestion pushed input costs up at their quickest pace since June, forcing producers to raise factory-gate selling prices.