The Australian Industry Group Australian Performance of Services Index jumped to 55.1 in November of 2018 from 51.1 in the previous month. It was the highest reading in five months and the twentieth consecutive increase in output. The headline was mainly nudged by a 9.4-point gain to 56.8 in new orders and by an 8.8-point climb to 54.5 in sales. Also, the gauge measuring average wages rose 5.6 points to 60.3, while the employment sub-index fell by 4.4 points to 52.9. On the price front, input cost inflation eased, whereas selling prices continued to fall. Services PMI in Australia averaged 49.40 Index Points from 2009 until 2018, reaching an all time high of 63 Index Points in June of 2018 and a record low of 39 Index Points in August of 2013.
Services PMI in Australia is expected to be 55.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Australia to stand at 53.87 in 12 months time. In the long-term, the Australia Performance Services Index is projected to trend around 52.20 Index Points in 2020, according to our econometric models.