S&P Global(US:SPGI) Xin Hua Cai Jing·2025-08-05 02:39Core Insights - The S&P Global Australia Composite PMI rose from 51.6 in June to 53.8 in July 2025, marking the highest level since April 2022, indicating a continuous increase in the private sector output for the tenth consecutive month [1][2] Economic Performance - The acceleration in Australia's private sector output in July was driven by increased business activity in the services sector and a recovery in manufacturing output [2] - The services sector business activity index increased from 51.8 in June to 54.1 in July, indicating sustained expansion above the neutral 50-point mark for the past 18 months [2] - The manufacturing PMI rose to 51.3 in July from 50.6 in June, remaining above the 50-point threshold for the seventh consecutive month, with overall new orders in manufacturing recovering despite a decline in new export orders [2] Employment and Pricing - Private enterprises accelerated hiring in July to address backlog orders, while facing ongoing cost pressures, leading to the largest price increase in nearly two years due to strong demand [2] - Business confidence in the manufacturing sector reached its highest level in over three years, reflecting optimism despite challenges [2] Future Outlook - While there are positive growth signs in the services sector, future activity indicators suggest a slight weakening in business optimism for the coming months [3] - The Reserve Bank of Australia is expected to implement further interest rate cuts, but inflationary pressures in the services sector have intensified, warranting close monitoring of future price trends [3]