The services sector in Australia continued to expand in March, albeit at a slower rate, the latest survey from S&P Global revealed on Tuesday with a services PMI score of 55.6.
That's down from 57.4 in February, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
This marked the second consecutive month in which business activity in the Australia service sector rose. Growth of new work continued for a second straight month in March, having been adversely affected by the Omicron wave outbreak in January.
The rate of growth slowed when compared to February, however, with anecdotal evidence pointing to higher costs and domestic flooding issues as factors weighing on demand. That said, foreign demand for Australian services improved for the first time since June 2021 on the back of easing border restrictions.
The survey also said its composite index fell to 55.1 in arch from 56.6 in February.
Both manufacturing and service sector output expanded in March, driven by higher demand. Demand for Australian services from abroad improved for the first time in nine months with the easing of border restrictions.
