Australia’s services sector expansion slowed noticeably in February, with the Judo Bank Services PMI easing to 52.2 from 56.3 in January 2026. The latest reading, updated on 19 February 2026, still remains above the 50-point threshold that separates growth from contraction, indicating the sector continues to expand but at a reduced pace.
The moderation from January’s stronger 56.3 print suggests that momentum in service activity has softened early in 2026. While the index level points to ongoing growth in areas such as business services, hospitality and consumer-facing activities, the decline in February implies a cooling in demand conditions or a more cautious operating environment across the services economy.
Investors and policymakers will be watching upcoming releases closely to assess whether February’s pullback marks the beginning of a broader slowdown in Australia’s services sector or simply a normalization following January’s relatively robust performance.
