PMI: Australia’s manufacturing growth slows in May ’25

Australia’s manufacturing sector continued to expand in May, although at a slower pace, with the seasonally adjusted S&P Global Australia Manufacturing Purchasing Managers’ Index (PMI) recording 51.0, down from 51.7 in April.

This marked the fifth consecutive month of improvement in operating conditions, but also the lowest reading since February.

The latest data showed a modest expansion in new orders, including a return to export growth for the first time in three months. However, overall new business growth softened to a three-month low, partly attributed to the federal election.

Manufacturing output contracted for only the second time this year, with the marginal decline leading to a pause in inventory accumulation after two consecutive months of increases.

The combination of weaker new orders and lower production levels resulted in a renewed drop in purchasing activity. Raw material replenishment slowed, and delivery delays contributed to a slight fall in stocks of purchases.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama