{"id":108817,"date":"2026-01-24T08:31:00","date_gmt":"2026-01-23T21:31:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=108817"},"modified":"2026-01-23T21:20:58","modified_gmt":"2026-01-23T10:20:58","slug":"the-economys-heating-up","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/the-economys-heating-up\/","title":{"rendered":"The Economy\u2019s Heating Up: Australia\u2019s Growth Just Took Off in January"},"content":{"rendered":"\n<p>Australia\u2019s economy kicked off 2026 with unexpected strength. As global markets hesitated, business activity across the country moved firmly into growth territory. The signal is clear, even if questions still linger in the background.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Economy Strengthens as Composite PMI Rebounds<\/h2>\n\n\n\n<p>The latest figures from S&amp;P Global show a clear acceleration. The Flash Australia Composite Output PMI rose from 51.0 in December 2025 to 55.5 in January 2026. This index, which combines manufacturing and services performance, uses 50 as the expansion threshold. The current level is the highest seen in several months.<\/p>\n\n\n\n<p>\u201c<em>January&#8217;s S&amp;P Global Flash Australia PMI indicated that business activity growth accelerated in the opening month of the year,<\/em>\u201d said Jingyi Pan to <a href=\"https:\/\/au.finance.yahoo.com\/news\/australia-apos-business-activity-hikes-092433636.html\" target=\"_blank\" rel=\"noopener\">Yahoo Finance<\/a>, Associate Director of Economics at S&amp;P Global Market Intelligence. According to her, the rise reflects \u201cresilient economic conditions\u201d and growing demand, both domestic and international.<\/p>\n\n\n\n<p>In practical terms, this means more orders, more production, and a more confident private sector. But it&#8217;s still early days, and the broader economic picture remains mixed.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Australia\u2019s Jan composite PMI rose sharply to a strong 55.5 mainly driven by stronger services conditions with a strong rise in new orders.<br>Price pressures moderated with a fall in both input and output price indicators with the latter running around subdued levels. <a href=\"https:\/\/t.co\/GPxGiCWGvG\">pic.twitter.com\/GPxGiCWGvG<\/a><\/p>&mdash; Shane Oliver (@ShaneOliverAMP) <a href=\"https:\/\/twitter.com\/ShaneOliverAMP\/status\/2014482643447148608?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 22, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Overseas Demand Sparks Hiring Gains<\/h2>\n\n\n\n<p>One of the strongest contributors to the positive data was foreign demand. Export orders lifted activity across both manufacturing and services. New work inflows prompted companies to increase staffing levels.<\/p>\n\n\n\n<p>Data from <a href=\"https:\/\/www.abs.gov.au\/\" target=\"_blank\" rel=\"noopener\">the Australian Bureau of Statistics<\/a> supports this trend. In December 2025, the country added 65,000 new jobs, well above market expectations. A striking detail: a significant portion of that growth came from young workers aged 15 to 24. This group, often more vulnerable to downturns, is re-entering the labour market with momentum.<\/p>\n\n\n\n<p>These hiring gains point to more than just seasonal recovery. They suggest that businesses are willing to invest in growth, at least in the short term.<\/p>\n\n\n\n<figure class=\"wp-block-image alignnone wp-image-108071 size-full\"><img decoding=\"async\" width=\"685\" height=\"414\" src=\"https:\/\/en.econostrum.info\/au\/wp-content\/uploads\/sites\/7\/2025\/12\/Capture-decran-2025-12-16-105201.jpg\" alt=\"economy\" class=\"wp-image-108071\" srcset=\"https:\/\/en.econostrum.info\/au\/wp-content\/uploads\/sites\/7\/2025\/12\/Capture-decran-2025-12-16-105201.jpg 685w, https:\/\/en.econostrum.info\/au\/wp-content\/uploads\/sites\/7\/2025\/12\/Capture-decran-2025-12-16-105201-380x230.jpg 380w, https:\/\/en.econostrum.info\/au\/wp-content\/uploads\/sites\/7\/2025\/12\/Capture-decran-2025-12-16-105201-520x314.jpg 520w\" sizes=\"(max-width: 685px) 100vw, 685px\" \/><figcaption class=\"wp-element-caption\">The logo of the Australian Bureau of Statistics<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\">Manufacturing Costs Remain a Risk for Inflation<\/h2>\n\n\n\n<p>While the numbers look encouraging, some risks haven\u2019t gone away. Inflation, particularly on the input side for manufacturers, remains a threat. Pan warned that rising input costs in the manufacturing sector could revive price pressures in the coming months.<\/p>\n\n\n\n<p>That said, output price inflation\u2014what businesses actually charge\u2014appears to have softened, thanks in part to more stable pricing in services. This balance is delicate. The Reserve Bank of Australia will be watching closely, as persistent inflation could complicate monetary policy decisions later this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Promising Start That Needs Confirmation<\/h2>\n\n\n\n<p><a href=\"https:\/\/en.econostrum.info\/au\/australias-economy-stalls\/\" target=\"_blank\" rel=\"noopener\">The Australian economy<\/a> has opened 2026 with strong signals: rising output, renewed hiring, and solid export demand. It\u2019s a welcome change after months of cautious growth and policy uncertainty.<\/p>\n\n\n\n<p>But one month doesn\u2019t make a trend. Questions remain around global supply chains, price stability, and the central bank\u2019s next move. Whether this momentum continues\u2014or fades under pressure\u2014will depend on how the next few months unfold.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australia\u2019s economy starts 2026 strong\u2014but is this growth here to stay, or just a quick bounce? Experts are watching closely.<\/p>\n","protected":false},"author":14,"featured_media":108818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-108817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=108817"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108817\/revisions"}],"predecessor-version":[{"id":108819,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108817\/revisions\/108819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/108818"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=108817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=108817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=108817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}