FX.co ★ Australia Services Activity Accelerates The Most in 16 Months

In July, the S&P Global Flash Australia Services PMI Business Activity Index climbed to 53.8, an increase from 51.8 in June, reflecting an acceleration in business activity growth as the third quarter commenced, marking its most rapid rate in 16 months. This uptick in services activity significantly contributed to the overall expansion of the private sector. There was a notable surge in new service orders, driven by a growing customer base and successful business development efforts, culminating in the strongest influx of new orders in over three years. Despite facing rising input costs, service providers increased their prices more swiftly than they did in June, indicative of heightened cost inflation pressures. Export orders for services stabilized after months of decline, providing some relief amid broader challenges. Although overall business sentiment remained positive, confidence decreased to its lowest point since last November, amid rising uncertainty.