The S&P Global Flash Australia Services PMI Business Activity Index was revised up to 50.5 in June 2026, from a preliminary estimate of 49.9 and a final reading of 48.7 in May. This latest figure signaled that the services sector had returned to expansion, though it remained only marginally above the neutral 50.0 threshold.
The improvement was underpinned by a renewed rise in employment, indicating fresh job creation during the month. Staffing levels increased for the seventeenth time in the past 18 months, although the pace of growth was modest.
In contrast, new orders fell for a fourth consecutive month amid ongoing market uncertainty, and export demand weakened further, reflecting the impact of the conflict in the Middle East.
On the price front, input costs rose, driven by higher fuel prices, but overall input price inflation eased for a second successive month. At the same time, output price inflation slowed to a five-month low, as firms faced stronger competitive pressures.
Finally, business sentiment deteriorated, slipping to its weakest level since November 2023.
