Australia’s Business Growth Slows as Exports Face Pressure in September

Australia’s business activity expanded at a slower pace in September as weaker new orders and falling export demand weighed on growth, according to a private survey.

The S&P Global Flash Composite Purchasing Managers’ Index (PMI) slipped to 52.1 in September from 55.5 in August. While the reading stayed above the 50 mark that signals growth for the 12th consecutive month, the pace of expansion eased notably.

The services sector saw activity cool, with the services PMI dropping to 52.0 from 55.8 in August. Manufacturing growth also moderated, with the PMI edging down to 51.6 from 53.0 as output weakened. Survey participants highlighted a slowdown in new business inflows, the weakest in three months, reflecting declining demand from overseas markets.

Manufactured goods orders recorded their sharpest decline in eight months, with respondents citing the impact of U.S. tariffs on Australian exports. “New business growth slowed after two strong months of expansion, with manufacturing new orders notably returning to contraction as the negative impact of US tariffs set in,” said Jingyi Pan, economics associate director at S&P Global Market Intelligence.

Business confidence also fell to its lowest level in a year. Firms expressed concern about global trade conditions, tariff-related pressures, and the outlook for slower economic growth.

Despite staying in positive territory, the PMI results suggest that Australia’s economy is facing headwinds from weaker export performance and softer domestic demand. Analysts note that continued trade uncertainties may challenge both the services and manufacturing sectors in the months ahead.