FX.co ★ Australian Service Sector Surges: Judo Bank Services PMI Hits 56.0 in January

The Australian service sector has posted impressive growth, as indicated by the Judo Bank Services Purchasing Managers' Index (PMI), which surged to 56.0 in January 2026. This significant increase from the December 2025 reading of 51.1 highlights robust expansion in the services sector and signals positive momentum for the Australian economy.

The January reading marks the highest level the index has reached in recent months, suggesting that businesses in the service sector are experiencing renewed confidence. The PMI, a key indicator of economic health, captures business conditions such as new orders, employment, and business expectations, with readings above 50.0 suggesting expansion.

This uptick in the services PMI could potentially lead to broader economic benefits, fueling job creation and potentially sparking increased consumer spending. As the backbone of the Australian economy, the vibrant service sector's growth is likely to have a ripple effect across various industries. The updated data, released on 22 January 2026, could reinforce investor confidence and set a positive tone for the economic outlook moving forward.