Australia Services Sector Growth Revised Higher

2026-05-04 23:06 By Chusnul Chotimah 1 min. read

The S&P Global Australia Services PMI Business Activity Index was revised slightly higher to 50.7 in April 2026 from 50.3 in the preliminary estimate, and up from a final 46.3 in March, which had marked the weakest reading since November 2023.

A rebound in services activity was supported by sustained job creation, with firms reporting improved business conditions.

However, new orders continued to fall as demand remained subdued amid higher fuel costs due to the war in the Middle East.

Despite weak demand, new business from abroad ticked higher, with growth in April following a sharp decline in March.

On prices, input cost inflation accelerated to the fastest pace since August 2022, driven by fuel price fluctuations.

As a result, firms raised selling prices at the fastest rate since January 2023, as higher fuel costs were passed through to customers.

Finally, business sentiment was unchanged from that seen in March, remaining relatively muted compared to the long-run average.



News Stream
Australia Services Sector Growth Revised Higher
The S&P Global Australia Services PMI Business Activity Index was revised slightly higher to 50.7 in April 2026 from 50.3 in the preliminary estimate, and up from a final 46.3 in March, which had marked the weakest reading since November 2023. A rebound in services activity was supported by sustained job creation, with firms reporting improved business conditions. However, new orders continued to fall as demand remained subdued amid higher fuel costs due to the war in the Middle East. Despite weak demand, new business from abroad ticked higher, with growth in April following a sharp decline in March. On prices, input cost inflation accelerated to the fastest pace since August 2022, driven by fuel price fluctuations. As a result, firms raised selling prices at the fastest rate since January 2023, as higher fuel costs were passed through to customers. Finally, business sentiment was unchanged from that seen in March, remaining relatively muted compared to the long-run average.
2026-05-04
Australia Services PMI Recovers
The S&P Global Australia Services PMI Business Activity Index climbed to 50.3 in April 2026 from a final 46.3 in the previous month, which had marked the weakest reading since November 2023. Flash data signaled a rebound in services activity, with firms reporting improved business conditions and stronger job creation. However, demand remained subdued, as softer client confidence and broader uncertainty continued to weigh on new business and overall sentiment.
2026-04-22
Australia Services Contract More Than Initially Expected
The S&P Global Australia Services PMI Business Activity Index fell to 46.3 in March 2026, larger than initial estimates of a 46.6 contraction, down from 52.8 in February. This marked the first contraction in 26 months and the sharpest decline since November 2023, reflecting weaker business activity and new orders, with firms citing turbulent international conditions and the war in the Middle East as key factors. Activity fell in four of five sectors, while new export orders dropped at a solid pace, ending a seven-month growth streak. Meanwhile, employment continued to rise, as firms expanded staffing for future projects, reducing backlogs for the first time in three months. On prices, rising fuel costs pushed operating expenses to the fastest rate since January 2023, with output price inflation reaching a 38-month high. Despite the contraction, companies remained cautiously optimistic about future growth, though overall business confidence slipped to a 28-month low.
2026-04-07