Australia Services Activity Accelerates The Most in 16 Months

The S&P Global Flash Australia Services PMI Business Activity Index rose to 53.8 in July, up from 51.8 in June, due to accelerated business activity growth at the start of the third quarter, reaching its fastest pace in 16 months. This rise in services activity was a key driver behind the overall expansion in the private sector. New service orders increased sharply, supported by expanding customer bases and successful business development, contributing to the strongest inflow of new orders in over three years. Despite rising input costs, service providers raised their prices at a faster rate than in June, reflecting stronger cost inflation pressures. Export orders in services stabilized after months of decline, providing some relief amid broader challenges. While overall business sentiment remained positive, confidence eased to its lowest level since last November due to increased uncertainty.