Australia’s Services PMI Falls to Seven-Month Low of 48.5

Australia’s private-sector activity contracted in October 2026, as services fell below the expansion threshold and manufacturing output weakened.

The services purchasing managers’ index (PMI) came in at 48.5, its lowest reading in seven months. A PMI below 50 signals contraction.

The Ai Group Manufacturing Index dropped 13.4 points to -20.1. The pressures on manufacturing included sluggish demand, elevated input costs, labor shortages, shipping disruptions and foreign competition.