FX.co ★ Australia Services Activity Growth Eases

The S&P Global Australia Services PMI Business Activity Index experienced a decline, registering at 51.0 in December, down from 52.8 in November. This suggests a slowdown in the service sector's growth if confirmed. The deceleration was largely due to weaker growth in services and new business, attributed to intensified competition. While new orders slowed down, hiring within firms accelerated as they sought to manage their workloads more effectively. Export demand for services also weakened, resulting in a modest increase in new export business compared to November. However, business confidence reached its highest level since June. On the cost front, input price inflation accelerated, driven by increased energy, wage, and material costs, while selling price inflation rose to its highest level in three months.