In summary:
- Improvement in Activity: The Services PMI showed increased activity in August after a softer July, indicating a rebound in the services sector.
- Business Confidence: Despite higher margin pressures, services firms became more confident about future activity levels over the next 12 months.
- Business Activity Growth: August marked the seventh consecutive month of expansion in Australia’s services sector, with the PMI rebounding to 52.5 from a low of 50.4 in July.
- New Business Increase: The new business index rose to a three-month high, potentially reflecting government stimulus impacting consumer spending.
- Employment Index Stability: The employment index remained slightly above neutral, suggesting that employment growth may be concentrated in specific sectors.
- Easing of Output Price Pressures: Output price pressures eased, with the index at 53.2, the lowest since mid-2021, indicating some relief from inflation, though input prices remain high.
- Input Price Pressures: Input price pressures remained high, with levels not seen since early 2023, contributing to ongoing inflation concerns.
- Future Business Confidence: The future activity index rose to its highest level in 12 months, indicating improved business confidence, with expectations for better trading conditions through the first half of FY25.
Flash reading here:
And, earlier this week:
