Australia Manufacturing Slips to Contraction on War Disruptions

Australia’s manufacturing sector posted its first contraction in five months in March as demand weakened and cost pressures surged amid the escalating war in the Middle East.

The S&P Global manufacturing PMI fell to 49.8 from 51.0 in February, dropping below the 50 threshold that separates expansion from contraction for the first time since October, according to a statement released Wednesday. Manufacturers posted a renewed fall in new orders at the end of the first quarter, ending a four-month sequence of growth.