The Australian services sector showed continued growth in October, with an increased pace as reported by Judo Bank's recent survey. The Purchasing Managers' Index (PMI) climbed to 51.0, up from September's 50.5, indicating further separation from the threshold that distinguishes expansion from contraction.
The acceleration in activity growth during October was primarily driven by higher inflows of new business. The expansion rate was robust, reaching its peak since May 2022. The rise in new work was attributed to improvements in fundamental demand and successful business development initiatives, particularly observable in the finance and insurance sectors, which registered the most substantial increase in new business.
However, it is noteworthy that this growth was predominantly domestic, as export activity saw a decline for the second consecutive month.
