The Australian services sector saw an expansion in February, as per the latest survey from Judo Bank. The services Purchasing Managers' Index (PMI) score was reported to be 53.1, indicating improvement from the previous 49.1. The PMI score has surpassed the critical 50-point threshold that demarcates growth from contraction.
It can be inferred that this revival in services activities was primarily driven by an uptick in demand conditions. For the first time in five months, there was a sharp increase in new services businesses, arguably the fastest since May 2022. Better economic conditions and a spur in inquiries likely fostered this surge in new work.
Simultaneously, the new export business also turned a corner and began expanding for the first time since September 2023, largely due to new client acquisitions and growing interest from Asian clients. As a result, service providers in Australia managed to accelerate their hiring to handle the surge in workloads.
