Economy

Watch the new-orders line and you know where China's factories are heading before output figures arrive. In July 2026, that line dropped to 48.5, the weakest new-orders reading since 2023, and the headline manufacturing PMI followed it down to 49.2, the first sub-50 reading in five months.

The number that matters most from the Bank of England's latest meeting is not 3.75, it is three. Three members of the Monetary Policy Committee voted against holding Bank Rate, preferring an immediate rise.

Cheaper petrol did nearly all the work in June's inflation figures. Strip it out and the measure the Reserve Bank actually sets rates by has not shifted in two months, and the fuel relief that flattered the number has already expired.

Mahdi al-Mashat, chairman of the Houthi-led Supreme Political Council, declared the Bab el-Mandeb Strait closed to Saudi-linked shipping in late July 2026, framing the move as retaliation for Saudi Arabia's blockade of Yemen.

From 3 August 2026, the fuel excise rate returns to 52.6 cents per litre, up from the discounted 36.6 cents per litre that has applied since 1 July. The Heavy Vehicle Road User Charge rises in parallel, from 16.4 cents per litre back to 32.4 cents per litre on the same date.

Sydney house values dropped 0.6% and Melbourne 0.9% in the first quarter of 2026, according to Cotality data. RBA rate hikes in February and March, combined with the economic fallout from the Iran conflict and rising fuel prices, have spooked buyers who were already stretched.

A year after Trump's Liberation Day tariffs hit 185 countries, Australia remains at the 10% floor rate, the lowest applied globally. Exports have shifted, the trade relationship has held, but new pharmaceutical tariffs and an escalating Iran situation are adding fresh complications.

A survey found 86% of entrepreneurs say government policy does not support their needs. Around 75% report difficulty raising investment.