The services sector in Australia continued to expand in May, albeit at a slower pace, the latest survey from S&P Global revealed on Friday with a services PMI score of 53.2.
That's down from 56.1 in April, although it remains above the boom-or-bust line of 50.
This marked the fourth consecutive month in which business activity in the Australia service sector rose, albeit at the slowest pace in the current sequence.
Growth of new work was sustained for a fourth straight month in May, boosted by the reduction in COVID-19 disruptions. Sub-sector data indicated that firms in the consumer services sector saw the strongest growth in sales. Meanwhile foreign demand likewise rose, supported by the easing of border restrictions.
The survey also showed that the composite index fell to 52.9 in May from 55/9 in April.
This indicated a fourth straight month of private sector output expansion, though the slowest in the current sequence.
Both manufacturing and services output growth weakened in May, with manufacturing output hampered by supply issues. Meanwhile demand continued to improve with incoming new business now expanding at a faster rate in services compared to manufacturing.
