The expansion of Australia's services sector persisted into September, although the rate of growth slowed, as indicated by the latest survey from Judo Bank, released on Thursday. The services PMI (Purchasing Managers' Index) registered a score of 50.5 for the month.
This figure represents a decrease from August's score of 52.5 but remains above the critical threshold of 50, which distinguishes growth from contraction.
The recent expansion in services activity was bolstered by an increase in new business inflows. Companies within the consumer services sector witnessed the quickest surge in both new business and overall activity. Insights from the survey suggest that this growth was aided by the expansion of customer bases and effective business development strategies, leading to a rise in new orders.
However, the survey also highlighted that the composite index, which combines both manufacturing and services sectors, fell into contraction territory with a PMI score of 49.6 in September, down from August's 51.7.
Despite this, overall new orders have continued to grow, driven by advances in new business within the service sector. This has supported an increase in employment levels for September, although the pace of new business and job growth has moderated compared to the previous month.
