FX.co ★ Australia Services PMI Accelerates the Most in Nearly 4 Years

The S&P Global Australia Services PMI Business Activity Index climbed to 56.3 in January, a notable increase from 51.1 in December, marking the fastest growth in the service sector in nearly four years. This surge highlights robust service activity and a significant rise in new business, with fresh orders experiencing their quickest increase since April 2022, driven by stronger domestic and international demand. Employment rose steadily as companies recruited more staff to handle increased workloads, though labor constraints persisted, leading to rising backlogs. Export demand saw a notable boost, contributing to a stronger rise in new export business compared to December. However, business confidence dipped in January due to concerns about economic prospects and heightened competition. On the pricing front, input cost inflation eased amid constant wage and supply cost pressures, while the inflation rate of selling prices also diminished, reaching its lowest point in two months.