Australia Services Growth Revised Upward

The S&P Global Australia Services PMI Business Activity Index rose to 53.2 in August 2026, exceeding the preliminary estimate of 52.9 but easing from July’s six-month high of 53.6. The latest reading marked a third straight month of growth, supported by a second straight monthly increase in new orders, although the pace remained modest and broadly in line with July. In contrast, foreign orders fell for a fourth month, weighed down by higher fuel costs and lower tourist numbers. Employment grew for a third month running, but the pace moderated from July. On prices, input-cost inflation remained elevated, with the rate of increase ticking up from the prior month, though it stayed well below April’s recent peak. Firms continued to raise their selling prices at a solid pace, albeit more slowly than in July. Finally, sentiment hit a six-month high, coming close to its level before the outbreak of war in the Middle East.

The S&P Global Flash Australia Services PMI Business Activity Index declined to 52.9 in August 2026 from July’s six-month high of a final 53.6, the preliminary data showed. The latest reading marked a third consecutive month of growth, as activity and new business continued to grow, though at slightly softer rates. Employment increased modestly, with pressure on capacity; the overall level of work outstanding increased for the second consecutive month in August, albeit only fractionally. On the price front, input costs rose amid higher fuel, freight, commodities, and raw material prices.

The S&P Global Flash Australia Services PMI Business Activity Index was revised higher to a six-month high of 53.6 in July 2026 from the initial estimate of 53.0 and after a final reading of 50.5 in the previous month. The latest reading marked a second consecutive month of growth, led by the real estate & business services and information & communication sectors, while transport & storage remained weak. Growth was supported by the first increase in new orders in five months, although export demand continued to decline. Employment rose for a second straight month at a solid pace, while backlogs of work increased for the first time in five months. On prices, input cost inflation eased to a five-month low despite higher fuel and wage costs, but firms raised selling prices at a faster pace to protect margins. Meanwhile, business confidence rebounded to its highest level since February, though companies remained cautious over persistent inflationary pressures and geopolitical uncertainty.