FX.co ★ Australia Services Activity Growth Accelerates

The S&P Global Australia Services PMI Business Activity Index climbed to 52.8 in November, up from 52.5 in October, demonstrating a more robust growth in the service sector. This uptick in activity was attributed to a stronger influx of new business, driven by enhanced underlying demand, with a notable acceleration in new orders. However, employment increased at its slowest rate in ten months, as companies faced challenges in finding qualified candidates. There was a significant boost in export demand for services, marking the fastest growth in new export business in over three years. Although business confidence held steady from October, it remained below the long-term survey average. On the cost front, input price inflation accelerated owing to rising energy, wage, and material costs, while the increase in selling price inflation was moderate but slightly higher than before.