Australia Services Growth at 3-Month Low

The S&P Global Australia Services PMI Business Activity Index declined to 51.4 in September 2026 from 53.2 in the previous month, marking the fourth straight month of growth, preliminary estimates showed. However, it was the softest expansion in services activity since June and the second consecutive month of easing growth, due to softer demand. Employment declined for the first time in four months. On prices, both input and output cost inflation remained elevated, driven by higher energy and fuel costs due to the impact of the Middle East conflict. Looking forward, business sentiment weakened.

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.