Judo Bank PMI.
Business activity in the Australian service sector declined for a second consecutive month in August, according to the latest PMI data.
Higher interest rates and softening economic conditions weighed on demand, leading to a first fall in new business in five months.
However, there was some relatively positive news on the cost front, as price pressures eased for Australian service providers.
Overall business confidence improved sharply, with hopes for better conditions ahead also leading to a further expansion in workforce capacity.
The seasonally adjusted Judo Bank Australia Services PMI® Business Activity Index fell to 47.8 in August, down from 47.9 in July.
The latest reading signalled a second straight month of falling business activity within the Australian service sector. Although little changed from July and modest overall, the rate of contraction was the fastest in the year-to-date.
The reduction in services activity was underpinned by lower new business inflows in August.
Survey respondents often linked the deterioration in demand to rising interest rates and higher prices. Although mild, this was also the first time that new business has declined in the service sector. since March.
Foreign demand remained under pressure, but the pace of contraction in new export orders was marginal and slower compared to overall new business.
