Asia Flash PMIs Diverge as Rates, Inflation Shape Private-Sector Activity

Flash PMI readings from S&P Global showed a split across major Asian economies in October: India improved while Australia and Japan weakened. Australia’s seasonally adjusted flash PMI composite output index fell to 47.7 from 51.3 in September, dropping below the neutral 50 level. Companies cited higher prices and higher interest rates as eroding demand, while price data suggested inflation may stay elevated. The Reserve Bank of Australia warned the inflation outlook has “materially worse,” driving speculation about further rate increases; it has already raised rates four times since the year began. India’s HSBC flash PMI composite output rose to 56.7 from 55.9 as inflationary pressures eased, though growth remained below its 2026 average so far. Japan’s headline stayed above 50 for the 19th straight month at 52.3, but new order growth softened.