S&P/ASX 200

Australian Services Sector Expands in August as New Orders, Hiring Strengthen

Australia's services sector expanded for a third straight month in August, supported by stronger new orders, hiring, and improving business confidence, even as rising fuel and wage costs pushed input price inflation higher, according to a monthly survey by S&P Global released Thursday.The S&P Global Australia Services PMI Business Activity Index edged down to 53.2 in August from 53.6 in July, but continued to signal a "solid" expansion in business activity.Transport and storage led a broad-based recovery in business activity in August, returning to growth for the first time since February as firms secured more new business and output increased, per the survey.New business activity rose despite a fourth consecutive monthly decline in new export orders, with high fuel costs and weaker tourist numbers weighing on overseas demand.Business confidence strengthened to a six-month high in August, buoyed by rising new orders, a strong pipeline of new business and expectations of improved activity over the next 12 months.Service providers expanded hiring for a third straight month in August as rising workloads pushed firms to add staff, though the pace of job creation slowed from July and remained insufficient to prevent backlogs from growing, the survey said.Service-sector input cost inflation accelerated in August, driven by higher fuel prices and wage pressures, prompting businesses to raise output prices despite a slower pace of charge increases than in July.The Composite Output Index fell to 52.7 in August from 53.2 in July, but still signaled a solid monthly expansion in business activity across Australia's private sector.Private-sector activity expanded in August, driven by a stronger services sector as manufacturing output edged lower, while new orders rose across both sectors and export orders returned to growth for the first time in five months.Business confidence rose to a six-month high as firms continued to add staff, even as input cost pressures intensified and selling price inflation eased from July.

ASX Preview: Australian Shares to Rise as Oil Rally, Gold Gains; Regis Healthcare Flags Aged Care Funding Rise as Below Cost Inflation

Australian shares are poised to rise on Thursday, tracking gains in global oil prices as renewed US-Iran military strikes stoked concerns over disruptions to crude supplies through the Strait of Hormuz.Investors are also watching softer US Treasury yields and a weaker dollar, which lifted gold prices, while awaiting US payrolls data for clues on the Federal Reserve's interest-rate path.Overnight, the S&P 500 and the Nasdaq Composite each rose 0.5%, while the Dow Jones Industrial Average gained 0.6%.In the macroeconomy, Australia's services sector expanded for a third straight month in August, supported by stronger new orders, hiring and improving business confidence, even as rising fuel and wage costs pushed input price inflation higher, according to a monthly survey by S&P Global released Thursday.In corporate news, Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation.Vault Minerals (ASX:VAU) delivered group mineral resources of 12.1 million ounces of gold and ore reserves of 3.9 million ounces of gold as of June 30.Australia's benchmark index fell nearly 1%, or 88.3 points, to close at 8,978.40 on Wednesday.

Australian Shares Fall; Telstra Group Says External Investigation Confirms Network Timing Issue as Cause of July Outage

Australian shares fell on Wednesday, tracking losses on Wall Street.The S&P/ASX 200 Index fell 0.97%, or 88.30 points, to close at 8,978.40.Brent crude oil futures ​climbed over $95 per barrel after the US conducted fresh airstrikes in Iran. Gold fell to around $4,330 per ounce.Overnight on Wall Street, the Nasdaq Composite fell 1%, the Dow Jones declined 0.8%, and the S&P 500 fell 0.7%.On the domestic front, Australia's gross domestic product (GDP) grew 0.4% in the June quarter on a seasonally adjusted, chain volume basis, after a 0.3% growth in the March quarter, according to data released by the Australian Bureau of Statistics. The GDP rose 2.1% compared with a year earlier.The Australian Industry Index rose 22.7 points in August to negative 3.5 in seasonally adjusted terms after a period of highly volatile conditions since the energy crisis began, according to a report released by the Australian Industry Group.In company news, Telstra Group (ASX:TLS) released the findings of an external expert investigation into its July mobile network outage, confirming the company's previous conclusion that the incident was triggered by a technical issue.Wesfarmers' (ASX:WES) incoming chair Ken MacKenzie acquired 4,000 shares in the firm for a consideration of AU$79.45 per share on Aug. 28.Lastly, Corporate Travel Management (ASX:CTD) logged AU$0.127 in earnings per share for fiscal 2026, compared with a loss of AU$2.453 a year ago. For the 12 months ended June 30, revenue was AU$665.9 million versus AU$635.8 million previously.

Australia's Q1, Q2 GDP Growth Points to Economy Growing Little Below Potential, ANZ Research Says

Australia's gross domestic product (GDP) growth in the first and second quarters combined points to an economy growing a little below potential, which is consistent with the drift higher in the unemployment rate over 2026 to date, according to a Wednesday note by ANZ Research.Australia's GDP grew 0.4% in the June quarter on a seasonally adjusted, chain volume basis, after a 0.3% growth in the March quarter. The GDP rose 2.1% compared with a year earlier.GDP growth was marginally weaker in the quarter but marginally stronger over the year, compared with the bank's own forecasts of 0.5% quarterly growth and 2% annual growth, ANZ said. It expects the Australian central bank will need to see a further easing in annual GDP growth and ongoing weak quarterly growth outcomes to bring demand more into balance with supply.Public demand registered a second soft quarter in a row, ANZ noted, adding that the ending of electricity subsidies was the main factor behind weak public demand in the first quarter, whereas it was a decline in public investment in the second one. Household consumption grew 0.4% quarter over quarter, the same pace as in the first quarter and down a touch from the 0.5% quarter over quarter average recorded over the second half of 2025.Business investment fell 0.5% quarter over quarter after a 6.2% quarter over quarter increase in the first quarter and is up a strong 10.5% over the year, reflecting the rollout of data center investment.

ASX Midday Sector Update: Communication Services Stocks Advance, Information Technology Sector Struggles

Communication services stocks advanced nearly 1% at midday Wednesday.Telstra Group (ASX:TLS) gained 2% in recent trade after releasing the findings of an external expert investigation into its July mobile network outage, confirming the company's previous conclusion that the incident was triggered by a technical issue.On the flip side, the information technology sector struggled, shedding more than 3%.Xero (ASX:XRO) shares fell nearly 3% in recent trade.

Australia's Economy Grows 0.4% in June Quarter

Australia's gross domestic product (GDP) grew 0.4% in the June quarter on a seasonally adjusted, chain volume basis, after a 0.3% growth in the March quarter, according to data released on Wednesday by the Australian Bureau of Statistics.The GDP rose 2.1% compared with a year earlier."Economic growth remained subdued in the June quarter as households continued to behave cautiously," said Grace Kim, the bureau's head of national accounts.The modest growth reflected pockets of strong private demand, partly met by higher imports, alongside stronger mining exports supported in part by drawdowns in mining inventories.GDP per capita was flat in the June quarter, following a 0.1% decrease in the March quarter.Household consumption rose 0.4% in the June quarter, despite subdued spending amid higher fuel prices and reduced domestic and international travel.Private business investment fell 0.5% in the June quarter, despite remaining over 10% higher than a year earlier, as data center fit-out spending eased from its March-quarter surge.Australia's imports of goods rose 2.4% while exports increased 0.8% in the quarter, with net trade contributing 0.1 percentage points to GDP growth.Employee compensation rose 1.5% amid higher wages, bonuses and redundancy payments.The household saving-to-income ratio edged up to 6.5% from 6.4% in the March quarter, as growth in gross disposable income outpaced the increase in nominal household spending.

Australia's GDP Rises 0.4% in June Quarter, Up 2.1% Versus June 2025 Quarter

ASX Preview: Australian Shares to Fall as Oil Surges on Escalating US-Iran Conflict; Telstra Says External Probe Confirms Network Timing Issue as Cause of July Outage

Australian shares are poised to fall on Wednesday as oil prices surged more than 4% to five-week highs after renewed US-Iran fighting stoked fears of prolonged disruptions to global energy supplies through the Strait of Hormuz.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.7%, 1%, and 0.8%, respectively.In the macroeconomy, the Australian national accounts report is due at 11:30 am Sydney time.In corporate news, Telstra Group (ASX:TLS) released the findings of an external expert investigation into its July mobile network outage, confirming the company's previous conclusion that the incident was triggered by a technical issue.Corporate Travel Management (ASX:CTD) reported Wednesday fiscal 2026 earnings of AU$0.127 per share on revenue of AU$665.9 million, compared with loss of AU$2.453 on revenue of AU$635.8 million a year earlier.Australia's benchmark index fell 0.1%, or 9.3 points, to close at 9,066.70 on Tuesday.

Australian Industry Index Rises in August, Australian Industry Group Says

The Australian Industry Index rose 22.7 points in August to negative 3.5 in seasonally adjusted terms after a period of highly volatile conditions since the energy crisis began, according to a report released by the Australian Industry Group on Wednesday.The activity, employment, new orders, and input indicators showed improvement, driven by enhanced conditions in construction and business services, particularly related to data center projects, the report said.The activity/sales indicator climbed by 31.2 points to negative 2.2, to be marginally contractionary in August, while the employment indicator improved by 24.9 points, the first month it has been positive since February.The contraction in new orders improved by 15.9 points to negative 14.9, up from negative 30.8 in July. Input volumes rose by 8.8 points, stabilizing at 1.Input prices increased 10.8 points to 68, while sales prices decreased 13.1 points to be broadly neutral at 0.2 in August, recording the widest gap in the history of the series and indicating limited cost pass-on and growing inflationary pressures on industrial margins.The Australian PMI (manufacturing) declined 5.7 points to negative 19.6, while the Australian PCI (construction) fell a further 7.3 points to negative 40.6, per the report.

Australian Shares Flat; Collins Foods Reports Nearly 7% Rise in Sales for First 17 Weeks of Fiscal 2027

Australian shares were again flat with a negative bias as economic concerns mounted in the wake of renewed Middle East hostilities.The S&P/ASX 200 Index was little changed to close at 9,066.70.Brent crude oil futures ​climbed over $91 per barrel after the US and Iran conducted attacks in the Middle East.Overnight on Wall Street, the Dow Jones fell 0.7%, the S&P 500 0.3%, and the Nasdaq 0.1%.On the domestic front, Australia's manufacturing sector maintained modest growth in August, with stronger new orders, business confidence, and employment offset by softer production and renewed supply-chain and cost pressures, according to a survey by S&P Global.Australia's seasonally adjusted current account deficit widened to AU$27.22 billion in the June quarter from AU$25.45 billion in the previous quarter, data from the Australian Bureau of Statistics showed.Total dwelling approvals fell 3.6% to 17,687 in July in seasonally adjusted terms after rising 6.9% in June, according to a separate report from the statistics bureau.In company news, Collins Foods (ASX:CKF) said total company sales in the first 17 weeks of fiscal 2027 were up 6.6% on the prior corresponding period on a constant currency basis, with KFC total sales up 6.4% in Australia, down 2.5% in the Netherlands, and up 44% in Germany.WiseTech Global (ASX:WTC) appointed Jeff Howard as chief financial officer, effective Sept. 28.CSL (ASX:CSL) entered agreements with the US Administration to lower medicine costs and expand its manufacturing footprint in the US.

Australia's GDP Growth Forecast to be 0.5% in Q2, ANZ Research Says

Australia's second-quarter gross domestic product (GDP) growth is forecast to be 0.5% quarter over quarter and 2% year over year, bringing the yearly increase in GDP back to a rate broadly consistent with the Reserve Bank of Australia's estimate of potential growth, ANZ Research said in a note on Tuesday.The bank's initial estimate for the GDP was 0.4% quarter over quarter growth and 1.9% year over year growth.GDP (expenditure) is likely to rise 0.1% quarterly and 1.7% on an annual basis, ANZ said. Household consumption is expected to rise 0.5% quarterly after a similar increase in the first quarter.Public demand will rise 0.2% quarter-over-quarter, ANZ said, adding that this gives a weak picture for domestic demand in the quarter, which is expected to be up just 0.1% on a quarterly basis.GDP (production) is expected to rise 0.5% on a quarterly basis and 2.2% on an annual basis. Real GDP (income) is forecast to rise 0.8% on a quarterly basis and 2.2% on a yearly basis. Productivity is likely to be little changed in the second quarter, ANZ said.

ASX Midday Sector Update: Energy Stocks Advance, Consumer Discretionary Sector Struggles

Energy stocks advanced nearly 2% at midday Tuesday.Woodside Energy Group (ASX:WDS) gained almost 2% in recent trade.On the flip side, the consumer discretionary sector struggled, shedding nearly 3%.Wesfarmers (ASX:WES) shares were down almost 4% in recent trade.

Australian Total Dwelling Approvals Fall in July

Australian total dwelling approvals fell 3.6% to 17,687 in July in seasonally adjusted terms after rising 6.9% in June, according to a report from the Australian Bureau of Statistics released on Tuesday.The total dwelling units approved saw a 9% increase compared with last year.Private sector houses fell 4.2% to 10,199 after gaining 6% in July 2025, while private sector dwellings, excluding houses, fell 0.4% to 7,119 following a nearly 20% rise last year.The value of total residential building fell 4.9% in July to AU$11.26 billion while the value of total non-residential building rose 14.4% to AU$9.93 billion.Approvals for total dwellings varied across states, with Queensland falling by almost 14%, New South Wales by 8.1%, and Western Australia by 0.3%.In contrast, Tasmania saw an increase of 15%, Victoria by 9.7%, and South Australia by 5.9%, per the report.

Australia's Current Account Deficit Widens in June Quarter

Australia's seasonally adjusted current account deficit widened to AU$27.22 billion in the June quarter from AU$25.45 billion in the previous quarter, data from the Australian Bureau of Statistics showed Tuesday.The balance on trade in goods and services widened to a deficit of AU$5.1 billion in the June quarter from AU$2.91 billion in the March quarter."Trade in goods and services continued to drive the current account deficit, recording the second trade deficit in a row, led by record values of fuels and passenger vehicle imports," said Jonathon Khoo, the Bureau's head of international statistics.Exports of goods and services increased 2.8%, driven by a 3.9% rise in goods exports, while imports grew 4%, led by a 6.9% increase in goods imports, per the report.Fuel and lubricant imports rose nearly 43% on higher oil prices, while non-industrial transport equipment imports climbed over 38%, driven by record electric and plug-in hybrid vehicle imports."The spike in electric vehicle imports reflects changing consumer preferences, supported by growing fuel security concerns and rising fuel prices," Khoo said.The net primary income deficit narrowed to AU$21.86 billion in the June quarter from AU$21.95 billion in the previous quarter, the report said.The capital and financial account recorded a AU$5.3 billion surplus in the June quarter, driven by a AU$7.6 billion surplus in the financial account.The AU$700 million increase in net trade is expected to add 0.1 percentage points to gross domestic product growth in the June quarter, the report added.

Australian Consumer Confidence Falls on Weaker Economic Sentiment

The ANZ-Roy Morgan Australian consumer confidence fell 2.6 points to 74.9 in the week of Aug. 24 to Aug. 30, ANZ reported Tuesday.The four-week moving average was unchanged at 76 points, per the report.Australian consumer confidence weakened last week, ending a four-week run of gains, as concerns over future economic conditions grew following stronger-than-expected inflation data, according to ANZ economist Sophia Angala.The Reserve Bank of Australia is expected to raise its cash rate by 25 basis points to 4.6% in November, as persistent inflation and resilient household spending keep pressure on the central bank to tighten policy further, Angala added.Weekly inflation expectation was unchanged at 6.1%, while the current financial condition indicator for 12 months was flat at 68 points. The future financial conditions for the next 12 months fell to 83.4 points from 84.2.Short-term economic confidence for the next year fell 5.5 points to 67.2, while medium-term economic confidence for the next five years decreased to 78.9 points from 82.4.The "time to buy a major household item" subcategory fell 3.4 points to 77.

Australian Manufacturing Activity Holds Steady in August as New Orders, Employment Improve

Australia's manufacturing sector maintained modest growth in August, with stronger new orders, business confidence, and employment offset by softer production and renewed supply-chain and cost pressures, according to a survey by S&P Global published Tuesday.The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Manager's Index (PMI) was unchanged at 52 in August, signaling a further modest improvement in the overall health of the manufacturing sector.Business conditions strengthened as new orders increased strongly and at a faster pace, marking the sharpest rise since January, while new export orders also returned to growth after a marginal decline in July.Manufacturers remained optimistic that improving demand would be sustained, raising expectations for higher production over the coming year, with confidence rising for the fourth consecutive month to its highest level since February.New order growth drove sustained job creation in the sector in August, with employment rising for a fourth straight month despite a slight decline in production amid muted demand and rising prices.Input cost inflation edged up in August due to higher freight and fuel costs, while output price inflation eased for the third consecutive month to its slowest pace since February.Manufacturers cut production and reduced input purchases and inventories, citing sufficient stock levels to meet current workloads, while efforts to streamline inventories led to the sharpest decline in finished-goods stocks since March.The Middle East war continued to disrupt supply lines to Australia's manufacturing sector, with shipping delays and rising freight costs pushing supplier delivery times sharply higher in August.

ASX Preview: Australian Shares to Fall as Oil Surges on US-Iran Conflict; Ausgold Fiscal 2026 Loss Narrows

Australian shares are poised to fall on Tuesday as oil prices surged more than 2.5% after renewed US-Iran military action heightened concerns over global supply disruptions and a prolonged conflict.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.3%, 0.1%, and 0.7%, respectively.In the macroeconomy, Australia's manufacturing sector maintained modest growth in August, with stronger new orders, business confidence and employment offset by softer production and renewed supply-chain and cost pressures, according to a survey by S&P Global published Tuesday.Australia's home value index fell 0.9% in August, marking its fifth consecutive monthly decline and leaving national home values 3.6% below the March peak, as the housing downturn deepened through winter and declines spread across 93% of capital city suburbs, Cotality said in a Tuesday report.The ANZ-Roy Morgan Australian consumer confidence fell 2.6 points to 74.9 in the week of Aug. 24 to Aug. 30, ANZ reported Tuesday.In corporate news, Ausgold (ASX:AUC) reported Tuesday a fiscal 2026 loss of AU$0.0199 per share on revenue of AU$3 million, compared with a loss of AU$0.0307 on revenue of AU$1.6 million a year earlier.CSL (ASX:CSL) has entered agreements with the US Administration to lower medicine costs and expand its manufacturing footprint in the US.Australia's benchmark index fell 0.2%, or 16.3 points, to close at 9,076 on Monday.

Australia Home Values Fall in August as Downturn Deepens, Cotality Says

Australia's home value index fell 0.9% in August, marking its fifth consecutive monthly decline and leaving national home values 3.6% below the March peak, as the housing downturn deepened through winter and declines spread across 93% of capital city suburbs, Cotality said in a Tuesday report.Sydney led the decline, with home values falling 1.4% in August, followed by Melbourne and Canberra at 1.1% each, Brisbane at 1%, and Adelaide and Perth at 0.8%."The combination of a sharp drop in demand and higher than average advertised stock levels is weighing more heavily on Australia's largest housing market," said Tim Lawless, Cotality's research director.The downturn was becoming more broad-based, with lower-priced housing also weakening as affordability pressures and softer demand spread across the market, per the report.Regional values declined 0.4% in August and 1.2% over winter, with regional South Australia the only major market to record growth.Weaker buyer demand is also weighing on activity, with estimated sales falling nearly 16% year-on-year and 12% below the five-year average, while Sydney, Brisbane and Perth each recorded declines of more than 20%.Capital city listings were 24% higher than a year ago despite a 6% decline in new listings, signaling slower market absorption, while longer selling times, greater vendor discounting and low auction clearance rates are increasingly favoring buyers.