S&P Global(US:SPGI) Xin Hua Cai Jing·2025-09-01 06:13Core Insights - The S&P Global Australia Manufacturing PMI rose from 51.3 to 53 in August 2025, marking the highest level since September 2022, indicating continued expansion in the Australian manufacturing sector [1] - The index has remained above the neutral level of 50 for eight consecutive months, reflecting a significant enhancement in the pace of expansion [1] Manufacturing Activity - The increase in new export orders contributed to a faster growth in overall new orders, leading to a notable rise in factory output in August [1][2] - Manufacturing firms have increased employment for the sixth consecutive month, resulting in a decline in backlogs for the fourth month in a row [1] Procurement and Inventory - Due to the growth in new orders, procurement activities increased for the first time since April, as firms aimed to build safety stock amid extended delivery times caused by shipping delays and supply shortages [2] - The overall inventory levels in manufacturing also rose as a result of increased procurement activities [2] Pricing and Costs - Input costs slightly increased in August compared to July due to rising material prices and transportation costs, prompting manufacturers to raise product prices [2] - However, the increases in both input costs and product prices remained below historical averages [2] Business Confidence - Business confidence in the Australian manufacturing sector reached its highest level in three and a half years in August, with firms optimistic about future sales driven by new product launches and improved macroeconomic conditions [2] Future Outlook - The short-term outlook for factory output in the Australian manufacturing sector is positive, supported by rising output indices, procurement activities, and employment indicators [3] - Despite strong demand, price pressures remain low, suggesting potential for further sales growth in the near term [3]