Australia's manufacturing and services sectors show strongest growth in nearly three years

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Australia's manufacturing sector grew at its fastest pace in nearly three years, as the S&P Global Manufacturing PMI rose to 52.9 in August from 51.3 in July. This expansion was driven by a sharp increase in new orders, which came as demand conditions improved and companies gained new customers.

The S&P Global Flash Australia Services PMI Business Activity Index rose to 55.1 in August from 54.1 in July, marking the fastest growth in 40 months.

The S&P Global Flash Australia Composite PMI continued to expand in August 2025, rising to 54.9 from 53.8 in July, marking the strongest growth since April 2022.

Meanwhile, consumer inflation expectations declined for the second straight month, easing to 3.9% in August 2025 from 4.7% in July—the lowest level since March.

The S&P/ASX 200 Index [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] rose 0.6% to 8,969 on Thursday, extending gains from the previous session and hitting a record high as investors reacted positively to strong PMI figures. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] depreciated past $0.642 on Thursday, marking its fourth consecutive session of declines and remaining at its lowest level in three weeks amid the latest release of economic data.

ETFs: (NYSEARCA:EWA [https://seekingalpha.com/symbol/EWA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FXA [https://seekingalpha.com/symbol/FXA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FLAU [https://seekingalpha.com/symbol/FLAU#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

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