Australian Services Sector Expands in July

The Australian services sector has shown significant growth in July, reaching its highest activity level since March 2024, as reported by S&P Global on Tuesday.

PMI Indicates Strong Growth

The seasonally adjusted S&P Global Australia Services PMI Business Activity Index rose to 54.1 in July, up from 51.8 in June. This marks the tenth consecutive month of growth in business activity, with the composite PMI also increasing to 53.8 from 51.6.

Expert Insights

Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, highlighted the acceleration in the service sector's growth at the start of the second half of 2025. "The rate of new business growth was sharp by historical standards, and it was also encouraging to see a stabilisation in exports after four straight months of contraction," Pan said. Additionally, the expansion in services activity led to a faster pace of job creation in July.