Core Insights - S&P Global's latest report indicates that Australia's Manufacturing PMI fell to 50.6 in June 2025, the lowest level since February of the same year, down from 51 in the previous month, marking the sixth consecutive month above the neutral line, indicating continued but weakening expansion in the manufacturing sector [1][2] Manufacturing Sector Performance - The report highlights a negative growth in new orders for the Australian manufacturing sector in June, with a significant decrease in new export orders, leading to a slight decline in factory output, procurement activities, and inventory levels during the month [1] - Despite the decline in output and orders, manufacturing firms continued to increase employment, although optimism regarding growth prospects has diminished [1][2] Pricing and Cost Pressures - Although cost pressures have intensified, the rate at which Australian manufacturers are raising selling prices has slowed down, which may provide support for market sales and could benefit the Reserve Bank of Australia in potentially lowering interest rates in the second half of the year [2] External Influences - Respondents in the survey indicated that U.S. trade policies have negatively impacted global demand for manufacturing products, including those from Australia [1]