Australian services PMI hits 7-month low of 48.5; Ai Group manufacturing index plunges

What happened: Australian economic activity contracted in October 2026 as both manufacturing and services output weakened. The Australian services PMI fell to a 7-month low and the Ai Group Manufacturing Index dropped sharply. Key numbers: Services PMI 48.5, a 7-month low. Ai Group Manufacturing Index fell 13.4 points to -20.1. Why it matters: The content attributes the manufacturing decline to sluggish demand, elevated input costs, labor shortages, shipping disruptions, and foreign competition.

Australian economic activity contracted in October 2026 as both manufacturing and services output weakened. The Australian services PMI fell to a 7-month low and the Ai Group Manufacturing Index dropped sharply.

The content attributes the manufacturing decline to sluggish demand, elevated input costs, labor shortages, shipping disruptions, and foreign competition.