Australia's Judo Bank Services PMI Falls to 50.5 in May, Manufacturing Holds Steady

Australia’s Judo Bank PMI: Manufacturing Holds at 51.7, Services PMI Slips to 50.5 in May

Sydney, May 22, 2025 – Australia's private sector activity showed signs of softening in May, as per the latest Purchasing Managers’ Index (PMI) data released on Thursday by Judo Bank and S&P Global.

The Manufacturing PMI came in at 51.7, remaining unchanged from April and signaling modest expansion in factory activity. A reading above 50 indicates growth, and while this result shows stability, it also reflects restrained momentum in the industrial sector.

However, the Services PMI, which covers a broader portion of the Australian economy, fell to 50.5 in May, down from 51.0 previously. The decline suggests that growth in the services sector has weakened, bordering on stagnation.

As a result, the Composite PMI, which combines both manufacturing and services data, eased to 50.6 from 51.0 in April, indicating that overall private sector growth slowed in May.

Economists note that while the manufacturing sector remains resilient, weakening in the service industries could be an early sign of reduced consumer spending or business confidence.

Market participants and policymakers will be watching upcoming data closely for further signs of economic direction, especially as global uncertainties and domestic inflation pressures persist.