Australian Manufacturing Activity Returns to Growth in November
By James Glynn
SYDNEY--Australia's manufacturing sector returned to strong growth in November, adding to increasing evidence that the economy is ending the year in a solid upswing.
The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Manager's Index rose to 51.6 in November, up from 49.7 in October.
Rising past the 50.0 no-change mark, the latest reading signaled that manufacturing conditions improved following a brief deterioration in October.
The data comes as recent inflation data suggest the economy is starting to overheat again after just three interest rate cuts by the Reserve Bank of Australia.
Recent job market data have also been solid, while consumer sentiment and the housing market are both strong.
Australia's third quarter GDP data will be released on Wednesday, and it is expected to show the economy grew by a little over 2.0% from a year ago.
However, despite the modest pace of growth, most economists are warning that the economy is reaching capacity constraints, ruling out additional interest rate cuts.
Low productivity growth and the fact the economic upswing has started from a high base means the next move in interest rates could be up, according to some economists.
The recovery in manufacturing in November was supported by an increase in new orders and production levels, though new exports continued to fall, the data showed.
Hiring and purchasing levels increased with greater new work inflows, but stocks of purchases fell amid worsening delivery delays.
Optimism regarding output in the year ahead increased since October, with panelists often citing business expansion plans and expected improvements in economic conditions to spur sales growth.
-Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
November 30, 2025 18:01 ET (23:01 GMT)
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